UBS chairman wants to keep Credit Suisse's Swiss unit

UBS Chairman Colm Kelleher has said that the bank is determined to keep Credit Suisse's Swiss unit, following the announcement of the merger between the two biggest banks in Switzerland on Sunday. Kelleher called the unit "a fine asset" and said that UBS aims to continue servicing its customers and clients as efficiently as Credit Suisse has done.

Kelleher also revealed that UBS plans to run down the investment banking part of Credit Suisse, as UBS itself operates with an investment bank-like model. However, he did not provide details on when or how this will be carried out.

When asked about potential job cuts resulting from the merger, Kelleher stated that it was too early to say, and that any decisions regarding job cuts would be made in a rational and thoughtful manner, once the bank has had time to analyze what needs to be done.

The merger between UBS and Credit Suisse marks a significant shift in the Swiss banking industry, as the two banks have long been competitors. The deal is expected to lead to a consolidation of the sector, with fewer players vying for market share. However, it could also lead to a concentration of risk, with the failure of one bank having a more profound impact on the entire system.

Despite the potential risks, the merger has been welcomed by many in the financial industry, who see it as a necessary step to ensure the stability of the Swiss banking system. The collapse of Silicon Valley Bank and Signature Bank in the United States has underscored the need for stronger and more resilient financial institutions, and the merger between UBS and Credit Suisse is seen as a step in the right direction.

However, there are concerns that the merger could lead to job losses and a reduction in competition, which could ultimately harm consumers. Some observers have also raised concerns about the concentration of power in the hands of a few large banks, and the potential impact this could have on the wider financial system.

Only time will tell whether the merger between UBS and Credit Suisse will prove to be a success. But one thing is clear: the Swiss banking industry is facing significant challenges, and the merger between these two giants is just one part of a larger effort to ensure its long-term stability and resilience.

With inputs from Reuters