UBS Group’s merger with Credit Suisse Group is a “plan A” for Swiss regulators who are seeking confidence in the country’s banking system, Financial Times reported.
The boards of the two largest Swiss banks plan to meet separately this weekend to consider the idea, the FT said in a report, mentioned the person briefed in the talks who did not name. The Swiss National Bank and regulator Finma are managing the discussions, the FT said.
UBS and Credit Suisse are opposed to a forced combination, Bloomberg reported earlier on Friday, citing people familiar with the matter. UBS prefers to focus on its own independent-centric strategy and is unwilling to take on the risks associated with Credit Suisse, the people said, asking not to be identified because the deliberations are private.
Credit Suisse is working on a turnaround after being rocked by deposit withdrawals and a stock slide. The company, the recipient of a $54 billion credit line from the Swiss central bank, has consistently said it has sufficient liquidity, and is working to win back clients.