CS collapse shakes confidence in Swiss economy

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The decline of Credit Suisse had a strong negative impact on confidence in the Swiss economy. According to the consulting firm Commslab, the political decision to take over the old number two building in the financial center by UBS caused a huge loss of reputation.

Specifically, the “Swiss Economic Reputation Index” (SERX), calculated by Commslab in collaboration with the University of Zurich’s Public and Society Research Center (fög), fell 7.9 index points to 92.2 points in the first quarter of 2023. The index thus recorded its highest quarterly loss since the start of the measurement, according to the Commslab study.

It’s not just the financial sector that suffers

Not surprisingly, Credit Suisse’s decline was responsible for the lion’s share of the decline. However, it is not only the financial sector that has lost its reputation.

While the decline of CS is reminiscent of the great financial crisis 15 years ago, it has yet to break the negative records measured at the time. In the financial crisis, several quarters followed one after another with massive reputational losses. Moreover, the current crisis perspective is still predominantly limited to the collapse of Credit Suisse.

Uninterrupted development to date

At the company level, the study’s authors also show for the first time how CS has built its reputation over the past 25 years. History shows that after a significant improvement in the management of the then CEO Oswald Grübel since 2008, an uninterrupted negative development has been observed until today.

The last intermediate low level was reached in 2014. At that time, the big bank in the USA had to admit that it was a criminal organization because of its dealings with tax evaders.

The “Swiss Economy Reputation Index” reflects the public’s perception of the Swiss economy. According to the information obtained, 212 companies affiliated with the private sector and the state are being examined. (SDA/kae)

Source :Blick