Following its acquisition of Credit Suisse, UBS has been placed under surveillance by Switzerland's consumer pricing watchdog, the regulator said on Thursday. This was due to worries that the bigger lender's market dominance may result in higher lending costs.
According to a statement, the supervisor conducted meetings with the Swiss National Bank, competition body ComCo, and financial market regulator FINMA to discuss the takeover's effects.
They noted that the conference set the foundation for future essential collaboration between the various agencies.
On Monday, UBS said that the integration of Credit Suisse's domestic operations and its own business had been successfully completed.
There was no official comment from UBS on the issue, but a representative cited the bank's prior remarks in which it was noted that there was intense competition in the Swiss banking industry.
In spite of ComCo's suggestions that the acquisition required more investigation, FINMA decided last month that there were no competition issues raised by the acquisition.
The price supervisor's office stated, "ComCo's analysis has shown that the merged UBS now has market power or dominance in some markets."
"This means that the price supervisor is directly responsible for monitoring price abuse in these markets," it stated.
Today, I'll be joined by Sam Adams to discuss the outlook for stocks of renewable energy.
The supervisor stated that loan interest rates were being specifically examined. Businesses in Switzerland are worried that future loan costs may increase because to the larger UBS's market dominance.
"The price supervisor assumes that the merged major bank is aware of its social responsibility and will behave accordingly," the agency stated.
The office stated that while it hopes that regulatory actions won't be required, it won't think twice about taking action if they are.
The Swiss price regulator states on its website that it is often in charge of evaluating pricing in cases where prices have been determined by the government, a cartel, or a dominating corporation rather than by free competition.
(Sourec:www.marketscreener.com)
According to a statement, the supervisor conducted meetings with the Swiss National Bank, competition body ComCo, and financial market regulator FINMA to discuss the takeover's effects.
They noted that the conference set the foundation for future essential collaboration between the various agencies.
On Monday, UBS said that the integration of Credit Suisse's domestic operations and its own business had been successfully completed.
There was no official comment from UBS on the issue, but a representative cited the bank's prior remarks in which it was noted that there was intense competition in the Swiss banking industry.
In spite of ComCo's suggestions that the acquisition required more investigation, FINMA decided last month that there were no competition issues raised by the acquisition.
The price supervisor's office stated, "ComCo's analysis has shown that the merged UBS now has market power or dominance in some markets."
"This means that the price supervisor is directly responsible for monitoring price abuse in these markets," it stated.
Today, I'll be joined by Sam Adams to discuss the outlook for stocks of renewable energy.
The supervisor stated that loan interest rates were being specifically examined. Businesses in Switzerland are worried that future loan costs may increase because to the larger UBS's market dominance.
"The price supervisor assumes that the merged major bank is aware of its social responsibility and will behave accordingly," the agency stated.
The office stated that while it hopes that regulatory actions won't be required, it won't think twice about taking action if they are.
The Swiss price regulator states on its website that it is often in charge of evaluating pricing in cases where prices have been determined by the government, a cartel, or a dominating corporation rather than by free competition.
(Sourec:www.marketscreener.com)
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