ZURICH Jan 7 Credit Suisse is
stepping up efforts to scale back riskier fixed income areas
squeezed by strict new regulation, it said on Tuesday.
The move reinforces a push by the Swiss bank to spread risk
taking more evenly between its two main units, private banking
for the wealthy and investment banking.
Credit Suisse wants the private bank to eventually account
for half of the group's risk-weighted assets (RWAs), against
around a third currently.
To do so, it is following rivals including UBS by
restructuring its investment banking activities, which are under
pressure from regulators requiring banks to set aside far more
capital to cover risks.
Specifically, Credit Suisse is shrinking its interest rate
trading arm, much of which will be transferred to a unit devoted
to winding down discontinued business.
Credit Suisse said it planned to cut RWAs in its
discontinued businesses by 58 percent by the end of 2015,
compared with a target of cutting them by 41 percent previously.
It also plans to slash its leverage in the same areas by 76
percent, compared with 52 percent when it disclosed the plan in
October, though the bank has made some changes to what it will
transfer to the discontinued unit.
These efforts are twinned with the bank's existing goal to
cut spending by more than 4.5 billion Swiss francs ($5
billion)by the end of 2015.
($1 = 0.9037 Swiss francs)
(Reporting by Katharina Bart and Oliver Hirt; Editing by Mark