Tag: Bank

BLKB Fund Management AG launches sustainable property fund

BLKB Fund Management AG, the Binningen-based subsidiary of Basellandschaftliche Kantonalbank(BLKB), has launched its first sustainable property fund. According to a press release, the BLKB (CH) Sustainable Property Fund will primarily invest in energy-efficient properties in Northwestern Switzerland and the neighbouring regions of Bern, Central Switzerland and Zurich. It is aimed at qualified investors who wish to invest in a high-quality property portfolio with a predominantly residential focus.

The initial issue has a volume of up to CHF 160 million. BLKB also intends to invest in the fund. The proceeds of this issue are to be used to acquire a property portfolio with a market value of CHF 177 million. The portfolio, for which BLKB has already acquired seven of the eight properties in the past two years, consists of energy-efficient properties in good locations. It is characterised by a high proportion of residential properties with a low vacancy rate. Currently, 80 per cent of the property assets in the BLKB (CH) Sustainable Property Fund are located in Northwestern Switzerland.

“The launch of the sustainable property fund with a focus on Northwestern Switzerland is an important milestone. The property sector offers attractive yield opportunities for investors and at the same time has a major impact on energy efficiency, which is particularly relevant for climate neutrality,” Michel Molinari, CEO of BLKB Fund Management AG, is quoted as saying in the press release.

The subscription period is expected to run from 24 June to 23 July 2025 with payment on 30 July 2025.

June 2025
Basel property market under pressure

Despite moderate price trends compared to the rest of German-speaking Switzerland, residential property in the Basel region remains in demand. Prices are rising significantly in rural communities in particular, which is increasingly prompting potential buyers to extend their search radius. According to Marco Pirelli from Basellandschaftliche Kantonalbank, the fall in mortgage interest rates over the past two years has also fuelled demand. However, this has been accompanied by growing affordability problems. While prices for detached houses have remained stable, condominiums have risen slightly. The result is a 35 per cent increase in mortgage enquiries within one year.

Examine financial options at an early stage
Pirelli advises prospective buyers to consider financing at an early stage. “The choice of mortgage products and terms varies from person to person. Clarifying the financial scope with the bank in good time creates planning security.” For many people today, this is crucial in order to be successful in the tense market environment.

Despite housing protection, prices are rising
The rental market in Basel is also showing signs of continuing inflation. Fabian Halmer from Holinger Moll Immobilien AG points to structural causes such as an outdated building stock with a high need for renovation. Despite housing protection, rents are continuing to rise, particularly in Basel-Stadt, where 84 per cent of the population live in rented accommodation. Although the situation is not as tense as in Zurich or Geneva, the low vacancy rate of 0.7 per cent signals an acute housing shortage.

Bottleneck due to too few building applications
The number of building applications submitted in the canton of Basel-Stadt is particularly alarming. While an average of 784 building applications were recorded each year from 2014 to 2020, the figure fell to just 190 between 2021 and 2023. Halmer believes the new Housing Promotion Act is one of the causes. It protects existing tenants, but hinders new construction projects and makes it more difficult to move in or relocate. The resulting supply bottleneck is likely to lead to further increases in rents.

Need for reform in legislation and planning
The experts agree that without targeted adjustments to the Housing Promotion Act and accelerated authorisation procedures, the housing market in Basel is at risk of coming under further pressure. Development sites such as Klybeckplus or Dreispitz Nord could provide relief. Provided they are pursued consistently. A sustainable housing policy must not only focus on protecting existing properties, but also actively consider future growth.

March 2025
Collateral in the construction and property sector – What to look out for?

The usual means of security
Collateral is ubiquitous in the construction and property sector. For the financing of land or residential property, mortgages (liens on real property) are in the foreground. Step-by-step transactions (e.g. the purchase of a plot of land or a flat) are usually secured with so-called promises to pay from banks. Abstract guarantees or sureties are then frequently used to ensure that construction work is carried out in accordance with the contract. Finally, it is also conceivable to hand over movable property as a pledge or to transfer (future) claims of one’s own company against third parties to a lender.

Guarantees and sureties in particular
With a guarantee, a bank or insurance company undertakes to pay the guarantee recipient an amount if certain conditions (e.g. a breach of contract) are met. If the bank/insurance company waives all defences and objections arising from the basic relationship, this is an abstract guarantee in accordance with Art. 111 CO. Such guarantees can be called with a mere notification, which is why they are often also called “guarantee on first demand”. In practice, such guarantees are used as performance, advance payment and warranty guarantees.

In contrast, a surety is always dependent on the underlying transaction. The bank/insurance company is entitled to the same defences and objections as the principal debtor. The main case of application in practice is the joint and several guarantee, which is also specified in the widely used SIA-118 standard as standard security for liability for defects.

The recipient of an abstract guarantee is in a better position and usually receives his money immediately. Guarantees are therefore expensive and the guarantor always requires security in the event of a claim. The need for security must be examined on a case-by-case basis and the form of the security must be weighed up.

Guarantees – a world of formality
Guarantees on first demand sound tempting because they are supposedly easy to handle. This can be deceptive: Firstly, the guarantee text must be checked, because not every guarantee is abstract. Then you need to keep an eye on the period of validity. When making a claim under a guarantee, the formal requirements in the guarantee document must be meticulously observed, otherwise payment may be refused (so-called guarantee rigour). Another decisive factor is the way in which the claim must be submitted to the bank/insurance company and with which declaration (directly, via a correspondent bank, etc.). It is worth checking this in advance.

A guarantee is utilised – what needs to be done?
When the guarantee is issued, it is important to ensure that the bank/insurance company undertakes to provide notification in the event of a claim. This gives the party against whom the guarantee has been issued the opportunity to have the bank/insurance company prohibited from making the payment by court order. However, it should be borne in mind that the courts will only prohibit a payout if the claim is clearly an abuse of rights. The hurdles are so high that payouts are very rarely prohibited.

January 2025
Reaction of the Swiss interest rate markets to global and local inflation trends

In April of this year, the inflation rate in Switzerland surprisingly rose from 1.04% to 1.37%. This increase, which is reflected in almost all sub-indices, nevertheless remains below the critical level of 2.00%. This development indicates that inflation remains manageable and does not require any drastic measures. The Swiss National Bank had already expected a moderate rise in inflation and now appears to have been confirmed that this rise will not be permanent.

Influence of global interest rate policy on Switzerland
The latest US inflation data has brought calm not only to international markets, but also to the Swiss interest rate markets. The positive reaction to the US data has lowered interest rate swap rates in Switzerland and indicates that a rate cut in June is almost certain. The SNB’s monetary policy decisions depend heavily on how the European Central Bank (ECB) and the Federal Reserve (Fed) adjust their interest rates. Current developments show a synchronisation of interest rate policy at a global level, which influences the Swiss franc and inflation forecasts.

Future expectations and monetary policy forecasts
The SNB remains committed to the possibility of lowering the key interest rate by 25 basis points, with a potential further reduction by the end of the year, depending on the actions of the ECB and the Fed. These adjustments are essential to stabilise the Swiss franc in the context of global currency dynamics and prevent excessive appreciation, which could weigh on the export economy. Despite the current inflation expectations and the weaker position of the franc, the SNB remains proactive and adaptable in its monetary policy strategy.

May 2024
Stefan Walter new Director of FINMA

Following his election by FINMA’s Board of Directors, Stefan Walter’s appointment as Director of the authority has now been approved by the Federal Council. Mr Walter’s impressive career includes significant experience in financial market regulation, including leading the development of supervision for global systemically important banks at the European Central Bank. In his previous role as Secretary General of the Basel Committee, he played a key role in coordinating global regulatory reform negotiations following the global financial crisis.

A German national with a Master’s degree in International Banking and Finance from Columbia University, Stefan Walter, 59, brings a deep understanding and extensive knowledge of financial market supervision. He succeeds Urban Angehrn, who stepped down in September 2023 for health reasons. Birgit Rutishauser will continue in the role of FINMA Director on an interim basis until Walter takes office on 1 April.

Walter’s appointment is seen as an important step for FINMA to strengthen its position as the leading regulator in the financial sector. His extensive experience will help to further develop Swiss financial market regulation and establish it at an international level.

January 2024
ZKB modernises network of locations

ZKB plans to invest a three-digit million amount in the modernisation of its network of locations over the next few years. “The physical presence on site and the proximity to our clientele is part of our DNA,” Steve Zurschmitten, Project Manager Sales and Market Area Manager Winterthur in Private Banking at ZKB, is quoted as saying in a statement from the bank. “That’s why we are also relying on the densest location network in the canton in the long term and are redesigning all of our 51 branches along a newly developed location concept.”

At the centre of the new concept is personal advice for private individuals and companies on important events. For everyday business, the branches offer digital self-service support. At some locations, the establishment of a so-called event zone is planned for events on topics such as owning a home or starting a business. Seminars on how to use the Twint payment solution, eBanking or mobile banking are intended to make it easier to get started with the digital implementation of banking transactions. Starting next year, all branches are to be converted by 2030.

The ZKB informs that the findings from the two pilot branches in Stettbach and Winterthur have been incorporated into the development of the location concept. Here, the cantonal bank evaluated which services will continue to be in demand in branches in the future and which will be shifted to the digital world. “By creating a new, contemporary offering with inviting meeting and advisory opportunities on site, we want to remain locally anchored and close to our customers and the population,” explains Zurschmitten.

August 2023
PostFinance and GLKB join CredEx

Credit Exchange AG has gained two new shareholders, PostFinance and GLKB, according to a press release. The two banks will also sit on the company’s board of directors. Mobiliar and Swisscom from Berne, Vaudoise Insurance from Lausanne and Bank Avera from Wetzikon ZH are already represented on the board. Mobiliar and Vaudoise Versicherungen will also participate in the current capital increase.

The new shareholders want to help expand the mortgage marketplace CredEx. To this end, PostFinance will also contribute its comparison and closing platform Valuu to CredEx. Specifically, Valuu is to be transferred to the joint venture CredEx, as PostFinance explains in a statement. CredEx will then bundle the brokerage business under the Valuu brand and continue to operate the brokerage business.

GLKB is already a long-standing partner of CredEx. “Over the years, a unique settlement ecosystem has been developed together with GLKB, which has greatly contributed to CredEx’s success,” Andrea Canonica, CXO of Credit Exchange AG, was quoted as saying in the statement. “With GLKB’s rich experience in the fintech sector, I am convinced that we will also achieve similar milestones together on the financing side,” Canonica added.

August 2023
Bank Thalwil inaugurates new headquarters

Bank Thalwil welcomes its customers in Thalwil with immediate effect at its new headquarters at Gotthardstrasse 14, Bank Thalwil Genossenschaft informs in a statement. The premises include open offices and meeting rooms, a new ATM zone and a safe deposit facility that can be used around the clock. “Bank Thalwil is a great enrichment for our lakeside community and gives the new centre, which is being built around Centralplatz, a characteristic face,” Thalwil’s municipal council president Hansruedi Kölliker is quoted as saying in the statement.

The bank is also introducing a new way of working at its new headquarters. Instead of individual offices, services will be provided in open offices without fixed workstations. Customer meetings will take place in the meeting rooms gardening, carpentry, weaving, plumbing and painting. Bank Thalwil explains that the name is intended to create a direct link to traditional crafts.

At the opening celebrations from 11 to 13 May, the bank counted around 3500 visitors. They were offered guided tours of the premises, accompanied by readings from the book “Thalwiler Geldgeschichten” (Thalwil Money Stories), face painting for children and a snack. “During the bank tours, which were completely booked out or partly overbooked, we were inundated with compliments and congratulations,” explains bank boss Sandro Meichtry. “I am very much looking forward to the new premises and the new way of working.”

May 2023
Credit Suisse announces a comprehensive strategy review
- Alternatives beyond the results of last year's strategy review should be considered, particularly given the changed economic and market environment. The goal of the review is to create a more focused, agile group with a significantly lower absolute cost base that can deliver sustainable returns to all stakeholders and provide superior service to clients.
- The first-class global wealth management business, the leading universal bank in Switzerland and the asset management business with multiple specializations are to be strengthened.
- Transformation of the Investment Bank into a capital-light, advisory-oriented banking business and a more focused market business, complementing the growth of wealth management and Swiss Bank.
- Review of strategic options for the Securitized Products business, which may include injecting debt capital into this market-leading, high-yield platform to realize untapped growth opportunities and free up additional resources for the bank's growth areas.
- The Group's absolute cost base is to be reduced to below CHF 15.5 billion in the medium term, in part through a bank-wide digital transformation that prudently ensures lasting savings while maintaining focus on improving risk management and risk culture.
Credit Suisse will provide more detailed information on the progress of the strategy review, including specific targets, upon the release of its third quarter 2022 results.
Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, said: "I am delighted to welcome Ueli as our new Group CEO to oversee the comprehensive strategic review at such a pivotal moment for Credit Suisse. With in-depth industry knowledge and an impressive track record, Ueli will help drive our strategic and operational transformation, building on existing strengths and accelerating growth in key business areas. Ever since I took over as Chairman of the Board and was able to review our bank with the renewed Board of Directors, I have come to appreciate the first-class quality of our business areas. But we need to be more flexible to ensure they have the resources necessary to remain competitive. Our goal must be to become a stronger, simpler and more efficient group with more sustainable earnings. I would like to take this opportunity to thank Thomas for his great commitment to Credit Suisse over the past 20 years, especially as Group CEO. He has put in tremendous effort and served our clients in Switzerland and internationally with great integrity and entrepreneurial spirit. I wish him all the best for the future."
Thomas Gottstein, outgoing CEO of Credit Suisse, said: “It has been a great honor and privilege to serve Credit Suisse over the past 23 years. The bank has impressive capabilities across all four divisions and an immense talent pool of more than 50,000 colleagues worldwide. Despite the challenges of the past two years, I am very proud of what we have achieved since I joined the Executive Board seven years ago and more recently in strengthening the bank, targeting high caliber executive recruitment and improving our risk culture. In the last few weeks, after discussions with Axel and my family and for private and health reasons, I have come to the conclusion that it is the right time to step down and to place the further phase with the decisive measures announced today in the hands of a successor. »
Ulrich Körner, new CEO of Credit Suisse, says: "I would like to thank the Board of Directors for the trust they placed in me at the beginning of this fundamental transformation. I look forward to working with all my colleagues in the bank and on the Executive Board and to devoting my full energy to the implementation of our transformation. This is a challenging undertaking, but at the same time a great opportunity to position the bank for a successful future and to realize its full potential. I would also like to thank Thomas for his support and partnership.»
Ulrich Körner has been a member of the Executive Board and CEO of Asset Management since April 2021. He came from UBS Group, where he was a member of the Executive Committee for 11 years, including six years as Head of Asset Management. Prior to that, he served as Chief Operating Officer. Since 2011 he has also headed the Europe, Middle East and Africa region for UBS. Before joining UBS, he held senior positions at Credit Suisse, including Chief Financial Officer and Chief Operating Officer of Credit Suisse Financial Services and CEO of the Switzerland region. Ulrich Körner holds a PdD in Business Administration from the University of St. Gallen (HSG).
Expansion of the leading position in wealth management and in the Swiss universal bank
Strong global wealth management, the universal bank in Switzerland and asset management form the roots of Credit Suisse. Strengthening these positions is a priority in the strategy review. At the same time, options for a fundamental transformation of the investment bank into a highly competitive banking division and a more sustainable markets division to complement wealth management and Swiss Bank are being examined.
In wealth management, Credit Suisse aims to expand its leading position in Switzerland, EMEA, parts of the Americas and APAC. In doing so, it can capitalize on its strengths in the ultra high net worth segment while accelerating core high net worth growth to drive recurring revenue, underpinned by a unified global platform. The bank's leadership position in Switzerland will be further strengthened by expanding "high-touch" capabilities in relation to wealth management, corporate and institutional clients, as well as accelerating "high-tech" activities through the CSX offering.
strategy review in relation to the Investment Bank; Review of strategic options for securitized products
The Board of Directors and senior management of Credit Suisse are convinced that the strategy review must essentially ensure that a less capital-intensive, advisory-oriented Banking division and a more focused Markets division are created. This complements the growth of the wealth management business and Swiss Bank and the strategic goals can be better met. In addition, the aim is to continue providing first-class services to customers and achieve more consistent performance.
The Bank will review various strategic options to continue the growth of our market-leading Securitized Products platform and associated financing business. It is a highly profitable global business with approximately USD 20 billion in risk-weighted assets and approximately USD 75 billion in leveraged exposure. It offers significant untapped growth opportunities that may be leveraged through raising leverage can become. This, in turn, would free up additional resources that could be invested in Credit Suisse's growth areas. Credit Suisse will continue to provide full support to clients in the Securitized Products area.
The Investment Bank's leadership is strengthened with the appointment of David Miller and Michael Ebert as Co-Heads of Banking and Markets, respectively. Christian Meissner, CEO of the Investment Bank, will focus on the ongoing strategic transformation of the business.
The development and implementation of the new strategy will be overseen by the full Board, supported by an ad hoc committee chaired by the Board, the Investment Bank Strategy Committee. Michael Klein chairs and other members are Mirko Bianchi, Richard Meddings and Blythe Masters.
Reduction of absolute cost base to below CHF 15.5 billion; further promotion of risk management culture
The Board of Directors and the Executive Board of Credit Suisse have launched a program to reduce the Group's absolute cost base to below CHF 15.5 billion in the medium term given the difficult economic and market environment. This builds on the Bank's commitments made at the Investor Deep Dive in June: to deliver significant savings in the Technology & Operations function to improve scalability and ensure the long-term sustainability of these efficiencies, while continuing to drive digital transformation and maintaining a robust risk culture of the group is further optimized.
Axel P. Lehmann says: «With this in-depth strategy review, we are setting clear priorities for the future of the company. We want to create lasting values by looking after our customers with care, commitment and entrepreneurial spirit. As we execute on our strategy review, our transformation and culture change will return Credit Suisse to its pre-eminent position as the bank for entrepreneurs in global finance."
August 2022