Credit Suisse will charge a fee on Swiss franc cash holdings from its richest clients to pay towards the interest levied by the central bank.
The Swiss National Bank (SNB) yesterday announced that commercial banks in future will pay a little less interest on sight deposits as it expects the negative rate regime to remain in place for a while to come. Swiss customers hold relatively large amounts of their assets in cash.
Credit Suisse decided therefore to demand a fee from rich clients for cash holdings on Swiss franc-denominated accounts. Switzerland’s second-largest bank soon will inform its clients about the step, «Bloomberg» reported, citing sources within the bank. Credit Suisse didn’t comment.
Following a Trend
Customers at Credit Suisse with more than 1 million euros in cash already are asked to pay a fee of 0.4 percent. Rival UBS in the summer introduced a similar charge on Swiss franc accounts for customers with more than 2 million francs in cash.
A number of private banks introduced similar charges in the past but most companies, before taking a fee are trying to get the clients to invest their cash in shares or other products.
Economists say that the pressure on the franc is a function of its role as a safe haven.
