UBS, the biggest Swiss bank, is planning to give up the majority of Russian clients of the Credit Suisse financial group. The bank considers the risks of working with such clients to be too high.
Source: NZZ Magazin
The sources of NZZ report that unlike Credit Suisse, UBS has always been cautious about Russian business and considered it suspicious.
Up to 75% Russian clients of Credit Suisse will have to withdraw from the bank after its merging with UBS.
Reportedly, it is happening because UBS considers the risks of connecting with such clients too high. USB is more conservative than Credit Suisse, and it wants to implement its risk management principles and corporate culture in the whole of the united organisation.
It is so far unclear which categories of Russians will be included in the decision of UBS, but it will most likely concern offshore clients – persons with a Russian passport residing in other countries and using the services of Credit Suisse on the cross-border basis. UBS has not commented on the situation.
The NZZ reported that UBS has been wary of Russian business for a long time.
The source of the NZZ said that UBS has been "suspicious" of Russia since 1999, and since 2014, after Russia occupied Crimea, the bank has not been making agreements with new clients.
On the other hand, Credit Suisse then used the opportunity to expand its business: a Russian department was considered a profit generating mechanism, which was bringing in an above average income.