And where are the global players from Switzerland in this renewed frenzy? UBS and Credit Suisse seem to be standing on the sidelines as events unfold and the question is whether this is a good thing or not.

UBS has enough cash to take part in a merger and rumors had it that the bank was eyeing up Commerzbank, with the corporate business of special interest as it could attract more rich businessmen for the Swiss bank's wealth management.

In recent years, UBS has been doing smaller deals instead instead of the large-scale mergers and acquisitions. In 2017, Switzerland’s largest bank bought the Luxembourg-based private banking division of Nordea. It also added businesses in Sao Paulo and Italy to strengthen the wealth management unit.

A Different Strategy

The same may be true for smaller rival Credit Suisse, which also focuses on the business with rich clients. Upon taking over three years ago, CEO Tidjane Thiam said he would also be inclined to buy but more specifically focus on the Swiss private banking industry.

So far a no-show. Credit Suisse didn’t follow up on its pledge and gave the few opportunities a pass – most recently Notenstein La Roche, the Raiffeisen unit. The Swiss No. 2 probably lacks the financial firepower for a bigger deal, and shareholders wouldn't be keen for a third cash call in as many years.

The current reluctance of the Swiss to get involved in the mergers-and-acquisition frenzy probably also is a result of their strategy. UBS and Credit Suisse focus on wealth management. Buying big inevitably entails adjusting your focus, which they won’t be keen on.

Risky Business

Remaining an onlooker may also have its advantages. Once a bank starts looking into the nitty-gritty of a merger or acquisition, it needs to spend considerable managerial firepower on this one issue and once a deal is being concluded, this is even more so the case.

Large-scale mergers are also risky because of cultural and financial reasons. Both big banks have learned their lessons. The merger behind the new UBS was painful and the integration of U.S. wealth manager Paine Webber also was more pain than success.

Credit Suisse’ acquisition of investment bank Donaldson Lufkin & Jenrette (DLJ) meanwhile in no way can be deemed an outright success. While DLJ evaporated over time, Credit Suisse in 2016 still carried over a billion-dollar goodwill in its books.

Still, remaining an onlooker may not be an option for ever though, because the sluggish performance of Swiss banking stocks may eventually prompt shareholders’ to demand a more active approach.