The fall of Credit Suisse has dealt a serious blow to Switzerland's credentials as the world's leading wealth management centre, experts warn, calling into question its reputation for stability, regulation and corporate governance.
has dealt a serious blow to Switzerland's credentials as the world's leading wealth management centre, experts warn, calling into question its reputation for stability, regulation and corporate governance.
Switzerland manages $2.6 trillion in international assets according to a 2021 Deloitte study, making it the world's largest financial centre ahead of Britain and the United States. But it faces competition from other centres including Luxembourg and in particular Singapore, which has grown rapidly in recent years.Switzerland's credibility as a stable, predictable country had been upended by moves like the decision to wipe out the holdings of Credit Suisse bondholders, he said.
Still, the number of banks has fallen, down to 239 in 2021 from 356 in 2002. Staff numbers since 2011 have slipped to 91,000 from 108,000.Others were more skeptical about the future, highlighting a reluctance to confront mistakes at Credit Suisse or take responsibility for the aftermath. Legge said the collapse should serve as a wake-up call, and could see new laws to improve corporate governance introduced.
The financial sector's contribution to the Swiss economy has also slipped, falling to 8.9% of Swiss GDP in 2022 from 9.9% in 2002 as industries like pharmaceuticals became more important in a country with the third highest GDP per capita in the world, according to IMF data.BAK Economics, a Swiss research institute, said the fallout from the debacle would be contained within the banking sector.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Switzerland puts up 260 billion francs for Credit Suisse rescueCredit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country's gross domestic product, as part of their merger to buffer Switzerland against global financial turmoil, documents outlining the deal show.
Read more »
Switzerland's secretive Credit Suisse rescue rocks global financeDays before a hastily convened press conference late on Sunday that would make the world's front pages, Switzerland's political elite were secretly preparing a move that would jolt the globe.
Read more »
'A financial banana republic': UBS-Credit Suisse deal puts Switzerland's reputation on the lineThe demise of banking giant Credit Suisse sent shockwaves through financial markets and appears to have dealt a blow to Switzerland's reputation for stability.
Read more »
Switzerland curbs bonus payouts at Credit SuisseSwiss authorities imposed curbs on bonus payments for Credit Suisse employees, a move that will penalise bankers after a multi-billion-franc state rescue of the bank.
Read more »
Analysis: Credit Suisse takeover sends shockwaves through London's banking sectorBankers in London braced for hundreds of potential job losses and a hit to Britain's already-dented financial sector after the historic rescue of Credit Suisse by Swiss rival UBS .
Read more »
What are CoCos and why are Credit Suisse's now worth zero?Swiss regulator wrote down the value of Credit Suisse's CoCos to zero. Here's what you need to know.
Read more »