Skip to main content

Are the Swiss Banks at risk?

 

Bank hall
The recent collapse of Credit Suisse has raised concerns about the stability of Swiss banks. While it is too early to predict the full impact of the event, some experts believe that other Swiss banks may be at risk due to their exposure to similar high-risk investments. However, others argue that Switzerland's strict banking regulations and conservative investment approach will prevent a widespread crisis. Ultimately, only time will tell how the situation will unfold, but it serves as a reminder of the importance of caution in financial decision-making.

In response to the Credit Suisse collapse, the Swiss government has launched an investigation into the bank's operations and risk management practices. This investigation will likely shed light on any potential weaknesses in Switzerland's banking system and may lead to increased regulatory measures. In addition, other countries with ties to Swiss banks closely monitor the situation and take precautions to protect their financial systems. It is clear that this event has far-reaching implications for the global financial community and highlights the need for continued vigilance in managing risks within financial institutions.

One potential outcome of the Credit Suisse collapse is increased scrutiny of high-risk investments and their role in banking operations. Some experts argue that these types of investments are necessary for banks to remain competitive, while others believe that they pose too significant a risk to financial stability. As regulators and industry leaders continue to assess the fallout from this event, there will likely be renewed debate over how best to balance risk and reward in banking practices. In any case, the lessons learned from the Credit Suisse collapse will have a lasting impact on the future of global finance.

www.sba.tax

Comments

Cloud Bookkeeping

H&M struggles with profitability.

  H&M blamed high clothes prices ,  its exit from Rus­sia and a cost-cut­ting pro­gramme for an unex­pec­tedly large col­lapse in its earn­ings as the world’s second-largest fash­ion retailer’s struggles with prof­it­ab­il­ity con­tinue .  Oper­at­ing profit plunged 87 per cent to SKr820mn in the fourth quarter to the end of Novem­ber from a year earlier .  Shares in H&M fell more than 4 per cent to SKr125 . 80 yes­ter­day ,  hav­ing lost nearly half of their value since their recent peak in April 2021 .  The Swedish retailer ,  which lags behind Indi­tex ,  the Span­ish owner of Zara ,  in sales and prof­it­ab­il­ity ,  launched a SKr2bn cost-cut­ting pro­gramme last year that included 1 , 500 job losses . H&M’s sales in the fourth quarter were up 10 per cent to SKr64 . 4bn but flat in local cur­rency terms .  It said sales from Decem­ber 1 to Janu­ary 25 had increased 5 per cent in local cur­ren­cies .  «Sales in ...

Commercial properties continue to fall

  UK commercial property values and rents are projected to «tumble off a cliff edge» in the first quarter of 2023, as estate agents warn offices will fare worst as prices fall. A survey of more than 400 commercial agents forecast a 2.9 per cent decrease in prices per square foot across the industry in the first three months of the year, with offices falling 3.1 per cent. «Where we saw the market stop still, we will see the market finding its level, people working out where things are, where value is,» he said. Listed vehicles have already seen this valuation drop in their share prices, with real estates investment trusts such as Land Securities and British Land falling by a fifth or more this year. According to the RIB estate report, offices are expected to suffer the most significant sales price falls, with nearly a third of respondents expecting them to come down by more than 5 per cent. In addition, the survey projected a 1.3 per cent fall in rents per square foot over the perio...

BoE is considering to increase deposit guarantee.

  According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...