Both banks have major operations in China. And both are now exposed to the health scare that is keeping Asia in its grip.
The ring-fencing that global banks in China are forced to enact is not of a typical kind for the financial world: the companies are called upon to help prevent the spread of the coronavirus through staff traveling from one country to the next.
UBS and Credit Suisse, No. 1 and No. 3 in Asian private banking, are in the focus. Both banks have major operations in Hong Kong and are top competitors in China’s mainland market.
Taking the Temperature
UBS ordered those of its 2,500 bankers based in Hong Kong who return from China to work from home, according to a report by the «Financial Times» (behind paywall). The offices of Switzerland’s largest bank remain open for business, but travel to mainland branches from abroad has been canceled – save for exceptional reasons.
Home office is also what’s on for the Credit Suisse bankers in Hong Kong that have visited mainland of China over the past 14 days. Bankers with flu symptoms are only allowed back once they have recovered fully and with a doctor’s note. The bank is offering staff to take their temperature at its Hong Kong headquarters. Like its arch-rival, Credit Suisse has put a travel ban to mainland China in force.
