MAS closely monitoring the implications for jobs in UBS and Credit Suisse takeover

Further, the Monetary Authority of Singapore (MAS) has conveyed its expectation for the banks to handle this matter responsibly.

In a press release issued on 12 June 2023 (Monday), the Monetary Authority of Singapore assured the public that the day-to-day operations of the Singapore entities of UBS Group AG (UBS) and Credit Suisse Group AG (CS) will continue uninterrupted amidst the legal completion of the takeover.

The two banks are to continue to operate in Singapore under separate licenses, with their primary activities being private banking and investment banking. As such, MAS reassured that the two firms have implemented governance structures to manage and facilitate the orderly integration of the Singapore operations.

On the matter of jobs and the workforce to be possibly affected, MAS said it is closely monitoring the implications for jobs in the banks and has conveyed its expectation for the banks to handle this responsibly. "The banks are working out the details of the manpower implications. MAS will work with relevant stakeholders to proactively address any impact on employment," it said.

Meanwhile, MAS has remained in close contact with the Swiss Financial Market Supervisory Authority (FINMA), CS and UBS on the integration. In a statement issued by FINMA on the same day, the authority noted the large banks' merger brings clarity and stability for the two banks, their clients, and the financial centre. As such, FINMA has assured that the teams and resources previously available for UBS and Credit Suisse are now being devoted to the intensive supervision of the merged bank.

FINMA CEO Urban Angehrn further added, “It is in the interests of all stakeholders that the merger is completed today and the bank can fully focus on the tasks ahead. For FINMA, the phase of intensive supervision will definitely continue. We will oversee the integration process with the utmost attention.”

The Swiss authority also clarified that the capital requirements due to the progressive component will fully apply to UBS after an appropriate transitional period. In this case, it will take place gradually from the end of 2025 and will be completed by the beginning of 2030 at the latest. As such, FINMA will set additional institution-specific liquidity requirements for the merged bank, as well as for the other systemically important banks, before the end of the year. These must be fulfilled in accordance with the revised legal basis from 1 January 2024.

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