UBS’ takeover of Credit Suisse ‘insignificant’ to HK’s banking sector: HKMA
The total assets of Credit Suisse’s HK branch represent less than 0.5% of the local banking sector's.
UBS Group AG’s (UBS) acquisition of Credit Suisse AG will be “insignificant” to the local banking sector of Hong Kong, according to the Hong Kong Monetary Authority (HKMA)
In a statement, the central bank said the total assets of Credit Suisse AG, Hong Kong Branch amounted to about $100b, representing less than 0.5% of the total assets of the Hong Kong banking sector.
To add, the Swiss bank’s licensed corporations are also not part of the top 10 active brokers in the local stock and derivatives market.
“As of the end of February 2023, Credit Suisse was the 9th largest listed structured product issuer, accounting for about 4% of the total market in terms of market value of outstanding units. Their overall exposures to the Hong Kong market are not significant,” HKMA said.
Credit Suisse operates in Hong Kong through its HKMA-supervised branch, and through two licensed corporations supervised by the Securities and Futures Commission (SFC).
All three remain operational and the bank’s customers can access their deposits.
The central bank assured that Hong Kong’s banking sector is “resilient with strong capital and liquidity positions.”