Global Banks Rush To Fill Credit Suisse Void For Swiss Smes

(MENAFN- Swissinfo) Global banks including JPMorgan, Bank of America and Deutsche Bank are stepping up an effort to serve Switzerland's small and mid-sized companies, as they look to fill the void left by the collapse of Credit Suisse. This content was published on September 7, 2025 - 15:54 5 minutes Financial Times

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Credit Suisse - which was one of the country's two global banks - played a critical role as both a partner for Swiss businesses and in bridging gaps with international markets. Its abrupt demise in 2023 and state-sponsored rescue by rival UBS created a significant gap in Switzerland's corporate banking ecosystem.

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Many major Swiss companies such as Lindt and Nestlé already have relationships with international banks. But the SME sector - which accounts for more than 99% the country's businesses and is the backbone of its economy - had long relied on Credit Suisse and UBS for lending, foreign exchange, cash management and advisory services.

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They were left rushing to find new corporate banking relationships. Local banks remain popular for domestic lending, but lack the international reach, such as treasury services and advisory capabilities of global banks.

A report by Deloitte in February found many Swiss SMEs were keen to expand internationally but were struggling to finance foreign acquisitions, in large part due to the consolidation in the Swiss banking sector. Transactions by SMEs in Switzerland fell nearly 9% in 2024 compared with the previous year.

International banks have seized on the disruption triggered by Credit Suisse's collapse. JPMorgan's headcount in commercial and investment banking in Switzerland has increased 10% over the past few years, according to Reinout Boettcher, head of Switzerland for the bank.

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Timing worked well

“Swiss corporations are increasingly open to engaging with US and other international banks - motivated by the need for global capabilities and more diversification,” he said.

Clemens Kaiser, Deutsche Bank's head of Switzerland, said the German bank set up a Zurich-based team to target mid-sized Swiss companies last year in order to deepen a push into that market.“The smaller Swiss companies were very open to work with us. We have been able to grow considerably in this segment over the past 18 months,” he said.

Other global banks started commercial banking in the country just as Credit Suisse was starting to unravel, including Citigroup, which launched its own Swiss commercial banking business in September 2022. Marni McManus, Citi's banking head for Switzerland said that“worked well from a timing perspective”, adding the bank“started targeting mid-sized companies, so anyone with $3bn in sales or less, down to $100mn”.

BofA chief executive Brian Moynihan said earlier this year that the bank had doubled the size of its team in the country since“recent disruption” in the market. The bank offers lending, deposits and cash management in Swiss francs.

Although Credit Suisse's collapse has enabled global banks to pick up new Swiss clients, they are still far from able to challenge the overall market dominance of UBS.

Companies diversify

Some fear that stringent new capital requirements for UBS in Switzerland could raise prices for commercial clients. Comco, the Swiss competition watchdog, has recommended monitoring prices and fees in relation to corporate banking in the wake of Credit Suisse's demise.

One director of a small industrial business based in the canton of Schwyz, who asked to stay anonymous to preserve banking relationships, said their business was a longtime Credit Suisse client - now UBS - but had last year also begun using a US bank for some services.“I like the diversification after what happened [with Credit Suisse],” the person said.

Swissmechanic, the industrial SME association, has previously said it hopes international banks will in future offer businesses better services and prices in Switzerland. Nicola Tettamanti, the head of Swissmechanic, said that a recent survey of its members had revealed that many were unhappy with the disappearance of a reliable bank.

He said diversification was increasingly being discussed, especially as regional and local banks lacked some services such as handling currencies or offering lines of credit, but added that many were“yet to look into foreign bank relationships”.

Copyright The Financial Times Limited 2025

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