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A crisis in customer service has emerged, highlighting deficiencies in federal authority responses. In related news, Banque cantonale vaudoise (BCV) has appointed Anne Maillard as the new head of retail banking, bringing experience from her previous role at BCF.
Standard & Poor's has reaffirmed Raiffeisen Zurich's long-term and short-term credit ratings at "AA-" and "A-1+", respectively, highlighting the bank's excellent capitalization, stable earnings, and solid credit quality. With a 17.9% market share in the Swiss mortgage sector, Raiffeisen remains a leading retail bank. The bank reported a profit of 641.6 million Swiss francs in the first half of 2024 and anticipates solid business development for the current financial year, though results may not match the extraordinary levels of the previous year.
The Credit Suisse crisis highlights the limitations of Switzerland's high-precision financial market regulation. While the Swiss excel in meticulousness, this approach may hinder their ability to address complex, long-term financial issues effectively. A shift in focus towards the broader purpose of regulation is essential for the financial center's future.
The Parliamentary Commission of Inquiry into Credit Suisse has concluded that senior management failed in their duties, prompting recommendations for stricter regulations on banks, including UBS. While UBS has adopted a more conservative approach post-takeover, concerns remain about potential future risks and the implicit state guarantees that could encourage reckless behavior. The effectiveness of new regulatory tools and the responsibility of systemically important banks towards the Swiss economy are critical for preventing future crises.
BPCE, a major French banking group, is set to enter the cryptocurrency market in 2025 through its subsidiary Hexarq, which has secured PSAN authorization to operate in the digital asset sector. This initiative aims to meet rising customer demand for crypto services and enhance client loyalty within the Banque Populaire and Caisse d’Épargne networks.As France positions itself as a leader in crypto regulation with the upcoming MiCA framework, BPCE's move reflects a broader trend of traditional banks embracing digital assets. Hexarq will compete with established players like SG Forge, potentially setting a precedent for other institutions in the evolving financial landscape.
Credit Suisse's collapse in March 2023 was attributed to years of mismanagement, with the Parliamentary Commission of Inquiry highlighting the board's failure to heed regulatory warnings. While federal authorities were found to have shortcomings, they acted decisively to prevent a broader financial crisis during the UBS takeover. The report emphasizes the need for improved oversight and timely decision-making in the banking sector.
Standard & Poor's has confirmed Raiffeisen's long-term and short-term credit ratings at "AA-" and "A-1+", respectively, highlighting the bank's excellent capitalization and solid credit quality. With a 17.9% market share in the Swiss mortgage sector, Raiffeisen reported a profit of CHF 641.6 million in the first half of 2024 and anticipates solid business development for the year, though results may not match the previous year's extraordinary levels.
France’s financial regulator, the Autorité des Marchés Financiers (AMF), has authorized BPCE’s subsidiary Hexarq to provide cryptocurrency services, allowing it to operate as a crypto asset service provider (CASP). Hexarq will offer services such as custody, buying, selling, and trading cryptocurrencies, integrating these into BPCE’s banking networks, Banque Populaire and Caisse d’Épargne, by 2025. This approval positions BPCE as a key player in France's regulated crypto market, which currently has only four approved CASPs, reflecting the stringent regulatory environment.
The Swiss parliament's commission of inquiry has released a 600-page report detailing the mismanagement that led to Credit Suisse's near-collapse and subsequent sale to UBS on March 19, 2023. The report criticizes the implementation of too-big-to-fail legislation and highlights institutional deficiencies in financial market supervision, offering 20 recommendations for improvement. This investigation underscores the ongoing concerns surrounding the banking sector's stability in Switzerland.
The Greens and Socialist Party have raised concerns over the risks posed by UBS following the Credit Suisse debacle, urging faster implementation of "too big to fail" legislation. They criticized UBS's management for excessive bonuses amid significant losses and called for stricter regulations. Meanwhile, the Federal Council and financial authorities are urged to enhance supervision to prevent future banking crises.
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