Credit Suisse to continue operating in Singapore without interruptions: MAS
Customers will have full access to their accounts
SINGAPORE — Credit Suisse Group will continue operating in Singapore without any interruptions or restrictions, said the Monetary Authority of Singapore (MAS) after the announced takeover of the troubled bank by its rival UBS Group.
In a statement released Monday (20 March), MAS said that all customers of the bank would continue to have full access to their accounts, while Credit Suisse's contracts with counterparties remain in force. All Credit Suisse entities will also continue operating under their respective licenses "for the time being", it added.
MAS added that it had been briefed earlier in the day by the Swiss Financial Market Supervisory Authority (FINMA) on the details of the takeover.
"MAS will remain in close contact with FINMA, CS and UBS as the takeover is executed, to facilitate an orderly transition, including addressing any impact on employment," said MAS in a statement.
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MAS also sought to reassure the public that the takeover is not expected to have an impact on the stability of Singapore's banking system. Credit Suisse and UBS' primary activities in Singapore are private banking and investment banking. Besides banking activities, Credit Suisse also conducts financial services under other licensed entities in Singapore. Both banks do not serve retail customers.
"MAS will continue to closely monitor the domestic financial system and international developments, and 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," read the statement.
On Sunday, UBS agreed to take over its troubled Swiss rival for US$3.25 billion following a weekend of discussions and a race against the clock before markets opened on Monday. The 11th-hour deal was aimed at preventing the troubled bank from triggering a wider international banking crisis.
The takeover announcement was well received by governments and financial regulators across the globe after a turbulent week that saw the collapse of Silicon Valley Bank and Signature Bank in the US. The collapse of the two banks is the biggest bank failure in the US since the 2008 financial crisis.
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