The Strategist

Credit Suisse to change approach to lending to billionaires


05/29/2020 - 07:08



Credit Suisse plans to revise its approach to lending to billionaires after the crisis, Bloomberg reports. In particular, the management of the second largest bank in Switzerland will re-evaluate risks of lending to customers associated with the oil and gas industry and shipping.



Plaza Financiera via flickr
Plaza Financiera via flickr
Credit Suisse is getting ready to revise its approach to working in one of the most profitable areas of its business - lending to billionaires, writes Bloomberg, citing sources. 

According to the agency’s interlocutors, the second largest bank in Switzerland will reconsider the approach to lending to those clients whose loans are secured by difficult to sell assets. In addition, Credit Suisse will re-evaluate lending to customers related to the oil and gas industry and shipping, sources say.

The bank’s spokeswoman told the agency that Credit Suisse is committed to a sustainable and profitable growth strategy for its business. “To achieve this, we are constantly reviewing our business model and adjusting ourselves for the long term to take into account where we see the potential for growth and the ability to offer unique solutions for customers,” said Credit Suisse’s representative.

In the first quarter, the bank lost $ 1 billion in all divisions due to bad loans and falling asset values, Bloomberg notes. The former head of the banking asset management division, Iqbal Khan, led an aggressive credit expansion, expanding the number of transactions with wealthy clients, before leaving for the main rival of Credit Suisse - UBS Group after an espionage scandal.

source: forbes.com




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