Credit Suisse takeover poses new risks for Swiss economy OECD
Swiss economy should be able to absorb resulting job losses
OECD raises competition concerns in Swiss banking
Swiss economic growth seen at 0.9 in 2024, 1.4 in 2025

ZURICH, March 14 Reuters UBS39;s rescue takeover of Credit Suisse a year ago has created new risks and challenges for the Swiss economy, the Organisation for Economic Cooperation and Development said on Thursday, the latest international forum to raise concerns about the deal.

The acquisition may have safeguarded financial stability, but also raises questions about UBS39;s domestic dominance and the need for stronger financial regulation in future, the OECD said in its economic review of Switzerland.

The biggest bank merger since the global financial crisis, orchestrated by the Swiss state to avert Credit Suisse39;s collapse, created a group whose assets dwarf the economic output of the country.

The statefacilitated acquisition of Credit Suisse by UBS … effectively stabilised the growing crisis within Credit Suisse and tamed risks of spillovers, thus safeguarding financial stability, but it raises new risks and challenges, the OECD said.

UBS already a global systemically important bank before the merger has thus become even larger and according to the 39;too big to fail39; TBTF regulations, it must meet even stricter regulatory requirements, it added.

The Financial Stability Board, a grouping of central bankers, treasury officials…