Published on September 23, 2024 at 05:20.
Are Swiss banks at risk of having to do without the dollar? The question is particularly relevant for small and medium-sized institutions, which use correspondent banks to carry out transactions in greenbacks. However, fewer banks provide this service and those that continue to do so are becoming more restrictive or more demanding, according to the testimonies we have collected. This is a growing concern in the financial market because without the dollar, no international activity is possible. Unthinkable for the vast majority of Swiss banks, whether they are active in wealth management, commodity trade financing or simply corporate lending.
There are apparently still a handful of players who agree to provide dollars to Swiss banks. These are some of the largest American groups such as Citi or JP Morgan, BNY Mellon and a few others. Large non-American groups can do so as well. In Switzerland, UBS has not offered correspondent banking services since 2012 and has informed us that it has not changed its approach to this subject after the integration of Credit Suisse. In short, the latter will remain active in this segment until its clientele is merged with that of UBS, in 2025. Theoretically, it is enough to be recognized by the American Federal Reserve and to be connected to its system, but the stakes are much broader.
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