No disruption to customer access or banking services amid takeover
The Monetary Authority of Singapore (MAS) has confirmed that Credit Suisse will continue its operations in Singapore without interruption, following its acquisition by UBS. In a statement issued on Monday (Mar 20), MAS assured the public that customers would retain full access to their accounts, and the bank’s contracts with counterparties would remain valid.
“Credit Suisse Group AG will continue operating in Singapore with no interruptions or restrictions, following the announced takeover by UBS Group AG,” MAS stated. It also reassured that the deal would not affect the stability of Singapore’s banking system.
Credit Suisse and UBS primarily operate in private banking and investment banking in Singapore, serving high-net-worth clients rather than retail customers. In addition to banking, Credit Suisse conducts financial services through other licensed entities in Singapore, which will continue under their existing licences for the time being.
MAS added that it has been in close contact with the Swiss Financial Market Supervisory Authority (FINMA) and has been briefed on the details of the acquisition. The central bank has pledged to monitor the transition closely, ensuring that it is executed smoothly and addressing any employment impacts. MAS also reassured that it would be ready to provide liquidity support if necessary to maintain stability in Singapore’s financial system.
The takeover, valued at US$3.23 billion, follows a period of instability for Credit Suisse, which faced significant challenges after its largest investor, the Saudi National Bank, declined to provide further financial assistance. Although the Swiss central bank provided a US$54 billion lifeline, Credit Suisse’s stock continued to decline, with a sharp drop of 8% in its share price just before the UBS deal was announced.
In 2022, Credit Suisse posted a net loss of US$7.9 billion and expects another substantial pre-tax loss this year. Despite these difficulties, MAS has reiterated that the takeover should not destabilise the Singapore banking sector.
