The timetable is set: the legal merger of UBS and the Swiss business of Credit Suisse (CS) is scheduled to take place in 2024. CS Switzerland, including its customers, will then be gradually transferred to the UBS systems by 2025. And the entire integration of CS should be completed by the end of 2026. But what does this mean for the customers of the two banks? The most important questions and answers.
What happens to my bank account at Credit Suisse? For the time being, the accounts at CS and UBS remain separate. As usual, (withdrawal) payments and transfers can be made via the accounts. Customer advice also remains unchanged at the moment. The CS asserts on its website: “There is currently no need for action.” The terms and conditions of the contract remain the same. However, as a result of the takeover, references to Credit Suisse Group in the contracts now also include the companies in the UBS Group.
Customers are withdrawing billions from Credit Suisse
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Legende:
KEYSTONE/Christian Beutler
At Credit Suisse, which was taken over by UBS, asset outflows continued in the second quarter. Globally, customers withdrew a net 39.2 billion francs between April and June, as UBS announced at a media conference on Thursday. Assets under management fell to 1,213 trillion francs.
What happens to the mortgage, the third pillar or funds? Not much will happen to the mortgages as part of the takeover. They are expected to be transferred to UBS and will continue to operate as before. Similar with the third pillar: the assets remain with the depositor. Assets in 3a accounts are generally very well protected. There is also little movement in the funds for the time being. According to the banks, business activities will continue until CS Switzerland is transferred to the UBS systems, probably until 2025. The CS shares, in turn, were taken off the stock exchange in June and exchanged for UBS shares. For every 22.48 CS shares there was one new UBS share.
Are all CS services provided by UBS? CS is completely absorbed into UBS. Nevertheless, at the moment and perhaps in the future, the brand or name “Credit Suisse” will remain. And so “it could be, for example, that the digital offer CSX, which was brought onto the market with a lot of effort, will continue to exist,” says SRF business editor Matthias Pfander.
How safe is my money with UBS? For regulatory reasons, large banks hold a multiple of secured customer funds as liquidity. At CS, too, it was repeatedly emphasized that the bank originally had a trust problem, but not a liquidity problem. One thing is clear: to protect account balances (Deposits) In the event of the insolvency of banks and securities firms, deposit insurance applies in Switzerland.
Depositor protection briefly explained
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The Banking Act stipulates: If a Swiss bank goes bankrupt, deposits must be up to one Maximum amount of 100,000 francs “privileged” 241 Swiss banks have agreed to implement deposit protection im “Esisuisse” association organized. All banks that have secured deposits must join this self-regulation.
To what extent are UBS customers affected? CEO speaks at the UBS media conference on Thursday Sergio Ermotti said: “We want to preserve the excellent parts of CS, as well as the excellent people. Through the integration we can secure more jobs and serve customers better.” According to business editor Matthias Pfander, “it is possible that teams with CS and UBS people will be mixed up, meaning that existing UBS customers will also have new contacts.” According to experts, economies of scale could also become relevant for UBS in the medium term. In other words: more financial products and services with more customers; In the best case, this means falling costs for the bank and customers.
Credit Suisse: Takeover by UBS
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Legend: KEYSTONE/Michael Buholzer
The major bank Credit Suisse is taken over by UBS. The latest developments surrounding CS and the current banking crisis in Switzerland as well as reactions and assessments can be found here.