The collapse of Credit Suisse led to a contraction of Swiss banks’ balance sheets -Today at 11:35|  Zone fair
Économie

The collapse of Credit Suisse led to a contraction of Swiss banks’ balance sheets -Today at 11:35| Zone fair

Credit Suisse customers who withdrew their money when the bank was on the brink of collapse are likely to be behind the first significant balance sheet contraction in a decade for all banks in Switzerland, according to a report released Tuesday by the Swiss Banking Association.

In Switzerland, bank balances fell 6.9% to 3,339.7 billion Swiss francs ($3.76 trillion) in 2022, according to Banking Barometer, an annual report on banking industry trends.

“The decline among the major banks was particularly large and was probably driven mainly by customer remittances to Credit Suisse,” the report said.

Credit Suisse’s high liquidity needs also played a role in demand deposits, with the Swiss National Bank falling more sharply in 2022 than in the previous decade.

“There was some rotation to term deposits, but much of the decline was driven by the transfer of customer money to Credit Suisse in October 2022,” the report said.

The Banking Barometer acknowledges that the collapse of Credit Suisse and its takeover by UBS has raised questions about the potential damage to the reputation of the Swiss banking sector. ($1 = 0.8873 Swiss francs) (report by Noele Illien, written by Louise Heavens)

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