The Swiss central bank releases its latest financial stability report
- Credit quality in Switzerland and abroad is expected to deteriorate
- Worse-than-expected developments would weigh further on banks' profitability
- Solid capital base puts UBS, Credit Suisse in favourable position to face challenges
- But stock market correction has reduced AUM value
- Uncertainty could lower demand for client, capital market transactions
- But impact on UBS, Credit Suisse likely to be limited due to partial economic recovery in 2H 2020 and stabilisation in financial markets
There isn't anything too relevant here and nothing that tees up a significant shift in policy stance ahead of their announcement later. The full report above can be found here.
