The logo of Swiss banking giant UBS Group AG in Zurich on March 23, 2023.
Fabrice Coferini | AFP | Getty Images
Switzerland’s financial watchdog ruled on Wednesday that UBS’s takeover of Credit Suisse did not raise any competition concerns, despite suggestions from the country’s antitrust watchdog that the deal merited further scrutiny.
In Switzerland, there has been a heated debate over UBS’s size and power. status.
“The merger of UBS and Credit Suisse will not eliminate effective competition in any market segment,” Swiss financial regulator FINMA said in a statement.
The decision follows a report sent to FINMA by competition authority COMCO in September, which was only made public on Wednesday, and FINMA’s decision has essentially drawn a line in the sand on the issue.
UBS stated that it will continue to implement the integration of Credit Suisse after the FINMA report.
COMCO’s role in assessing the impact of the merger was suspended at the time as Swiss authorities used emergency laws to push the deal through. But the agency can still review UBS’s position in specific markets on competition-related issues.
UBS, which acquired its long-time rival in the biggest banking bailout since the financial crisis in September 2008, considered selling Credit Suisse’s domestic operations but ultimately chose not to do so.
The historic acquisition eliminates one of Switzerland’s two banking giants and raises concerns that any problems at UBS could upend the Swiss economy.
It also narrows financing options for the country’s high-cost, export-oriented businesses, especially Credit Suisse, a bank seen as supporting entrepreneurs.
UBS Chief Executive Sergio Ermotti on Tuesday slammed calls for tougher regulations for his bank, saying “fear” and “populist” criticism were dragging down the bank’s business.
“When I saw the discussions after UBS bailed out Credit Suisse, I saw more fear than courage,” he said in Lucerne.
About The Author
