UBS’s takeover of Credit Suisse has sparked concerns about the repercussions for Swiss companies due to the newly enlarged bank’s significant market dominance. The historic 2023 merger resulted in a bank with a balance sheet twice the size of the Swiss economy, effectively eliminating one of Switzerland’s two major banking giants. This consolidation has narrowed financing options for the country’s high-cost, export-oriented businesses, especially since Credit Suisse was known for supporting entrepreneurs in areas like export finance. Despite UBS Chief Executive Sergio Ermotti’s assurance that market competition remains robust, he acknowledged that Credit Suisse had been operating an “unsustainable business model” with excessive costs, insufficient revenue, and high risk, suggesting future price increases.
The potential impact of these changes has caused anxiety among Swiss businesses. Industry experts and executives interviewed by Reuters expect UBS to raise prices as new loan agreements are negotiated. A recent survey by Swissmem, an association representing major companies such as ABB and Siemens, found that nearly half of the firms reported deteriorating banking services or feared this would occur. Jean-Philippe Kohl, Swissmem’s deputy director, noted that the availability of credit was the biggest concern for companies. While evidence of higher costs remains limited, analysts suggest that the full extent of the impact will become clearer in the coming months as old loans are replaced by new agreements.