Switzerland's financial watchdog FINMA outlined on Monday the critical elements of its regulatory requirements for the unified entity following UBS's emergency acquisition of Credit Suisse. The regulator expressed approval of UBS's strategy to promptly lessen investment banking risks, which comes into play after UBS formally finalized its rescue takeover of its troubled competitor.
FINMA emphasized its plan to maintain intense supervision over the merged entity during the assimilation process. "The lawful culmination of the UBS and Credit Suisse merger symbolizes the end of a period of significant uncertainty," said FINMA in a public statement. "This leads to a clearer and more stable state."
FINMA pointed out that one of the top priorities for the new, consolidated bank is to promptly mitigate the risk posed by the previously ailing Credit Suisse investment bank. The regulator is confident that this can be accomplished.
"Post transaction completion, the combined bank possesses the requisite capital and liquidity resources for a swift and resolute risk reduction, as well as the successful integration," FINMA stated.
UBS, the country's largest bank, grew substantially on Monday after announcing the finalization of its takeover of Credit Suisse. The latter's rescue was supported by the government earlier this year.
The consolidated bank now boasts a balance sheet worth $1.6 trillion and manages $5 trillion in assets. The completion of this deal has placed UBS at the forefront of crucial markets, a position that would normally take years to attain. UBS has stated that the merged bank will be the "unquestionable leader in Switzerland."
The mega-bank now has 120,000 employees across the globe. However, it has already disclosed its future plan to cut jobs to capitalize on synergies and cut costs.