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Friday, Dec 02, 2022

SNB chairman says investment in Credit Suisse is more of ‘tactical’ than ‘strategic'

SNB chairman says investment in Credit Suisse is more of ‘tactical’ than ‘strategic'

The Saudi National Bank’s recent investment in Credit Suisse is more of a “tactical” investment than it is “strategic,” the bank’s chairman, Ammar al-Khudairy, told Al Arabiya in an interview.
Al-Khudairy also said that the investment percentage of 9.9 in Credit Suisse was carefully selected, adding that there were no plans to increase this percentage.

“When banks have shares that exceed 9.9 percent in other banks, they get classified in a new category of regulations and accountability,” he said.Al-Khudairy explained that the regulators of central banks interact differently with a bank that has a share higher than 9.9 percent in another bank and that affects what is called “the capital adequacy ratio.”

“It also affects our ability to buy and sell, and the disclosures we need to make. Thus, we see no purpose or use of getting classified into a new category,” he added.

He also clarified that the maximum investmentamount in Credit Suisse was $1.5 billion, adding that the “actual investment amount will be below $1.4 billion.”

Asked if there are plans to sell this share if it were to garner substantial capital gains, al-Khudairy said there were no plans to do so before 2024 or 2025.
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