Switzerland's central bank will shortly revise the rules on sight deposits. The expected impact on bank revenues is now coming into view.
The Swiss National Bank is revising the way it pays interest on sight deposit accounts held by banks, it announced in a media release at the start of the week.
As finews.com reported previously, the short of it is that banks will potentially be receiving less than they did in the past as the SNB will only be paying the full policy rate on a smaller proportion of sight deposit accounts. Beyond that, sight deposits held to meet reserve requirements will no longer be earning interest starting in early December.
That has consequences. according to investment boutique KBW. They believe the step will prompt UBS to miss out on 135 million US dollars in interest. Still, that will only be a small drop in the total annual interest income UBS is expected to fetch, which news service «Bloomberg» currently forecasts at $8.5 billion.
UBS will publish its third quarter results next Tuesday, with finews.com having put out a report Thursday on the obstacles the bank could still potentially face related to its integration of Credit Suisse.
