UBS and Credit Suisse, which are among the largest and most important banks in Switzerland, may soon merge. This is according to the financial information website Inside Paradeplatz, which had already reported on the Credit Suisse shadowing affair.
Axel Weber, Chairman of the Board of Directors of UBS, and Federal Councillor Ueli Maurer are already discussing the project, known as Signal. The Swiss Financial Market Supervisory Authority (FINMA) would also be aware of the possible fusion, which could take place at the beginning of 2021. The new banking giant would thus become Europe's leading bank and could compete with such giants as HSBC.
While none of these rumours have been officially confirmed, the Swiss press is already in turmoil over what could be one of the biggest deals in the financial sector since the merger between UBS and the Basler Bankverein in 1997. Thus, economist François Savary states on RTS that "the scenario of a merger between UBS and Credit Suisse is highly unlikely, but not impossible". He believes, however, that in order to carry out such a union, the two banks would have to sell some of their activities, particularly in retail banking, corporate credit and mortgage credit. For its part, Le Temps says that "the financial sector could have a world leader in asset management, the size of the US leaders", but at the same time points out that such a concentration on the Swiss market could be "considered excessive". It should be remembered that the two banks hold almost 25% of the mortgages on the Swiss market.
All that is left now is to wait a few weeks to verify the truth of these rumours...