The analysis shows where the flow of new money increased the most: these cantonal and regional banks benefited the most from the CS collapse

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Almost seven months have passed since the Federal Council decided on the forced marriage of UBS and Credit Suisse (CS). A tremendous amount of money has flowed from Credit Suisse since then. According to quarterly figures, it amounted to 211 billion francs between October 2022 and June 2023.

Vontobel analyst Andreas Venditti (50) shows where the billions of dollars are going in an analysis presented by the French-speaking Swiss newspaper Le Temps. Accordingly, in addition to UBS, regional and cantonal banks in particular also benefited from above-average inflows of new money. And this is especially true for eastern Switzerland.

St. Gallen’s win

Cantonal and regional banks achieved 7.1 percent higher net cash inflows compared to previous years. New money inflow in the entire sector was around 4.5 percent. The greater benefit of cantonal banks is probably due to the fact that they benefit from state guarantees. In case of bankruptcy, the relevant canton is responsible for the bank’s liabilities. This allows customers to get their money back. That’s why in times of crisis cantonal banks often attract newcomers.

One of the top earners is St. It became Wales Kantonalbank (SGKB). According to SGKB, one-third of the 3.6 billion francs added in the first half of the year came from Credit Suisse.

Less than expected new money in ZKB

Zürcher Kantonalbank (ZKB) recorded an even clearer increase. According to the analysis, new money inflow of 19 billion francs was achieved. This corresponds to a 10 percent increase. But the bank hopes for even more, writes “Le Temps”, citing ZKB finance director Martin Bartdenhewer (55).

Vontobel research shows Julius Baer as another winner of the market moves. The private bank in Zurich recorded inflows of 7 billion, a growth of 3.3 percent.

What does the future look like? Venditti tends to expect large sums of money to continue flowing through CS accounts. The analyst predicts that huge capital inflows from UBS will likely offset declines at Credit Suisse. (wgr)

Source :Blick