The concerns about the quality of banking services and credit conditions for industrial companies in Switzerland have increased following UBS's acquisition of Credit Suisse.
A survey conducted by Swissmem, the industry's umbrella association, found that nearly 25% of its member companies believe that these conditions have worsened since the merger.
Martin Hirzel, President of Swissmem, expressed disappointment with UBS, highlighting the growing dissatisfaction among businesses that rely on the bank for essential services.
UBS benefits from significant protection against competition complaints due to the legal framework surrounding it.
A clause in the Banking Act effectively limited the Competition Commission (COMCO) from intervening during the merger process.
While COMCO could inform the financial markets watchdog, Finma, about potential price increases and the risk of a dominant market position, these warnings were largely ignored.
Swiss competition law presents additional challenges in addressing complaints against UBS.
COMCO can only intervene after a complaint has been filed and must investigate not only UBS but also other banks in the market.
This process can take years, during which the competitive landscape may change significantly.
Experts in competition law have criticized the inadequacies of the Swiss legal framework in managing complex market dynamics.
Patrick Krauskopf, a professor of competition law and former vice-director of COMCO, suggests revising competition law to better equip regulatory bodies to respond to emerging challenges.
He proposes adopting mechanisms such as sector inquiries, similar to those used in Germany, to enhance Switzerland's ability to monitor and regulate the financial market effectively.
The current state of competition law in Switzerland has significant implications for the financial sector and its stakeholders.
The lack of effective regulatory oversight may hinder competition and innovation within the banking industry as UBS solidifies its position following the Credit Suisse acquisition.
Furthermore, the inability of regulatory bodies to act swiftly in response to complaints may create a perception of complacency within the banking sector.
Given these developments, stakeholders across the financial landscape are encouraged to engage in discussions about the future of competition law in Switzerland.
The potential for reform presents an opportunity to create a more equitable and competitive environment for all market participants.
Effective regulation is crucial in ensuring that the needs of businesses and consumers are met in a rapidly changing financial landscape.