The acquisition of Credit Suisse will cause revisions to UBS‘ recovery and emergency plans according to FINMA.
The yearly approval of the recovery and emergency plans has been deferred by the Swiss Financial Market Supervisory Authority (FINMA), which has concluded that UBS must make improvements to the integration of Credit Suisse in order to maintain its resolvability.
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FINMA anticipates that UBS will advance its preparation for resolution. According to the Swiss Federal Council’s TBTF Report, legislative changes are required to allow authorities additional options and greater flexibility in times of emergency.
In assessing UBS’ solvency as of 31 December 2023, FINMA decided that Credit Suisse’s integration had created impediments. FINMA believes that if the desired restructuring method is implemented, UBS may be addressed today by “single point of entry” recapitalisation.
UBS continues to meet the requirements for loss absorption capacity. However, due to the merger, it is necessary to harmonise the group structures, procedures, and IT platforms. The identified hurdles are now being tackled by manual data aggregation until all processes resume automatic operation and data is delivered to strategic systems.
Simultaneously, UBS’ present resolution plan simply calls for the business to continue operating while the business model is restructured.
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By GlobalDataIn order to further fortify crisis readiness and resolution plans for systemically significant banks, more alternatives for action are needed in light of the Credit Suisse issue.
As a result, FINMA anticipates that UBS will examine its emergency and recovery strategies. As a result, the yearly evaluation of these plans has been put on hold until 2024.
Moreover, towards the end of September, UBS confirmed the continuation of its collaboration with the Mercedes-AMG PETRONAS Formula One Team.
Since 2011, the bank has served as a part of the team’s partner family, and throughout that time, the team has won seven Drivers’ and eight Constructors’ World Championships.
Iqbal Khan, co-president UBS global wealth management and President UBS Asia-Pacific said: “We are proud to extend our long-term partnership with the Mercedes-AMG PETRONAS Formula One Team. The partnership reflects our shared values: a commitment to innovation, talent, and teamwork, which all drive performance. I look forward to the opportunities our partnership will present in this next chapter together, as we continue to provide unparalleled experiences for our clients.”
