Announcements

    Drinks

      The Wide Angle – Key takeaways from the UBS takeover of Credit Suisse
      MONDAY, 20/03/2023 - Scope SE & Co. KGaA
      Download PDF

      The Wide Angle – Key takeaways from the UBS takeover of Credit Suisse

      Sam Theodore has come up with his key takeaways following UBS’s takeover of Credit Suisse.

      The total write-off of Credit Suisse’s AT1 securities was the biggest shock.

      The regulatory framework for placing banks into resolution as going concerns may be more questionable than previously assumed.

      The demise of Credit Suisse showed again that it is funding and liquidity, not capital, which remain the Achilles’ Heel of banks.

      The CS situation is a good reminder that it is banks’ fundamentals that really matter. Prudential and financial metrics are relevant and cannot be discounted but key to any proper analysis is what a bank does and how it does it: business model, risk culture and tolerance, risk management and competitive positioning.

      Deposits have been thought of as stable sources of funding. For the affected banks, they have been anything but. Institutional market funding has remained more stable.

      Consideration should be given to the raising the ceiling for deposit insurance across Europe.

      The issue of global inter-connectedness within the banking and financial system should be revisited.

      The UBS-Credit Suisse merger shows again that major M&A transactions occur mainly when one of the entities is in deep distress.

      Download The Wide Angle.

      Related news

      Show all
      Webinar: Commercial real estate – how concerned should debt investors be?

      26/3/2024 Research

      Webinar: Commercial real estate – how concerned should debt ...

      German savings and co-operative banks well positioned to face challenges

      26/3/2024 Research

      German savings and co-operative banks well positioned to face ...

      Scope affirms AAA rating of Wüstenrot’s Austrian mortgage-covered bonds, with Stable Outlook

      25/3/2024 Rating announcement

      Scope affirms AAA rating of Wüstenrot’s Austrian ...

      The Wide Angle – European banking to 2030: more vigorous on the digital, more rigorous on risk

      25/3/2024 Research

      The Wide Angle – European banking to 2030: more vigorous on ...

      Updated issuer rating report on Landkreditt Bank AS

      18/3/2024 Monitoring note

      Updated issuer rating report on Landkreditt Bank AS

      German banks: systemic crisis unlikely amid persistent concerns about real estate slump

      15/3/2024 Research

      German banks: systemic crisis unlikely amid persistent ...