10 Muharram 1446 - 16 July 2024
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Eye of Riyadh
Business & Money | Friday 21 June, 2024 6:13 am |

UBS CEO warns Switzerland may lose world’s wealth hub status

UBS CEO Sergio Ermotti warned that Switzerland could lose its position as the world's wealth management center if policymakers overreact to the collapse of Credit Suisse.


Ermotti, who was chosen once again as head of Switzerland's largest bank a few days after his former rival was rescued last year, stated that Switzerland’s banks need to be able to compete on a global level.


Countries such as Hong Kong, Singapore, and the United States are competing strongly with Switzerland and making significant progress to be the world’s offshore wealth management hub, Financial Times reported, citing Ermotti.


During a speech at the University of Lucerne, Ermotti said that Switzerland cannot be complacent, believing that fierce competition among local banks to be enough.


He indicated that the wealth management sector in Hong Kong is expanding at a compound annual growth rate (CAGR) of 7.6%, which is expected to surpass Switzerland by 2027.


According to the Boston Consulting Group's (BCG) classification of global offshore wealth management centers for 2022, Hong Kong ranked second in the world followed by Switzerland.


UBS is currently discussing with Swiss authorities the future of financial reform in Switzerland in the wake of Credit Suisse's collapse, as one of the key issues is being whether banks with international subsidiaries should be required to hold additional capital, Ermotti said.





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