Credit Suisse to continue S'pore operations 'without interruption' following announced UBS takeover: MAS

SINGAPORE — Credit Suisse Group will continue operating in Singapore "with no interruptions or restrictions", following an announced takeover by UBS Group, the Monetary Authority of Singapore (MAS) said on Monday (March 20). 

Credit Suisse's customers here will continue to have full access to their accounts and contracts with counterparties remain in force.

"The takeover is not expected to have an impact on the stability of Singapore’s banking system," MAS said in a press release.

Under the deal announced on Sunday, UBS will pay 3 billion Swiss francs (S$4.33 billion) for 167-year-old Credit Suisse and assume up to US$5.4 billion (S$7.24 billion) in losses.

The deal is expected to close by the end of 2023.

Credit Suisse and UBS' primary activities in Singapore are private banking and investment banking. The two banks do not serve retail customers.

However, Credit Suisse also conducts financial services under other licensed entities in Singapore — Credit Suisse Securities and Credit Suisse Trust Limited. 

MAS said that these entities will continue operating under their respective licenses. 

The authority has been in close touch with the Swiss Financial Market Supervisory Authority (Finma) — the supervisory authority of both Credit Suisse and UBS.

It was briefed by Finma earlier on Monday on the details of the takeover.

Finma had on Sunday issued a statement announcing the takeover and the support measures taken by the Swiss Confederation and the Swiss National Bank.

These included Swiss National Bank providing additional liquidity assistance to ensure that Credit Suisse and UBS can continue to meet all obligations throughout the transaction period.

These measures are aimed at ensuring stability for Credit Suisse’s customers, the Swiss financial system and international financial markets, MAS added.

It also said that it will remain in close contact with Finma, Credit Suisse and UBS as the takeover is executed, to facilitate an "orderly transition", including addressing any impact on employment. 

It will continue monitoring the domestic financial system and international developments as well.

"(MAS) stands ready to provide liquidity through its suite of facilities to ensure that Singapore’s financial system remains stable and financial markets continue to function in an orderly manner," it said.