St. Galler Kantonalbank (SGKB) has experienced growth in its corporate client base, which is attributed to the recent takeover of Credit Suisse (CS) by UBS.

Increased Corporate Clients

CEO Christian Schmid announced a 6.5 percent increase in commercial and corporate clients since the beginning of 2023, indicating a strategic advantage for SGKB in the changing banking landscape.

The influx of new clients is believed to have come from larger banking institutions, and SGKB is well-prepared to accommodate these transitions.

Implications of SNB Assessment

The Swiss National Bank's (SNB) upcoming assessment has significant implications for SGKB's savings customers.

If the SNB decides to further loosen its monetary policy, SGKB may need to lower interest rates on savings accounts.

This potential adjustment is part of a broader trend of declining capital market interest rates, which has led to cheaper mortgages and loans but also raises concerns for depositors.

Possibility of Negative Interest Rates

SGKB is currently evaluating the possibility of reintroducing negative interest rates, but CEO Schmid believes that negative rates are not beneficial for the economy and assumes that the SNB shares this sentiment.

The bank is closely monitoring the situation as any changes in monetary policy could have far-reaching effects on the banking sector and the broader economy.

Commitment to Cooperative Role

SGKB remains committed to its role as a cooperative and shareholder in the Olma trade fairs, and is prepared to contribute to any necessary measures in the future.

Growth in Corporate Clients

The bank's growth in corporate clients reflects the shifting dynamics within the banking industry, highlighting its competitive positioning and ability to adapt to market conditions.

SGKB is focused on ensuring sustainable growth and supporting its clientele amidst the fluctuations in interest rates and economic policies.