LONDON, Jan 30 (Reuters) - UBS and Credit Suisse , which dominate the Zurich gold market, raised their charges for holding bullion according to clients and people familiar with the banks cited by The Financial Times.
The newspaper reported on Wednesday that the move is designed to persuade clients to take direct ownership of their gold in “allocated accounts,” making the bank simply a custodian.
According to unnamed people familiar with the bank’s thinking, the decision forms part of broader efforts to reduce the size of balance sheets.
Traders told the newspaper that fees vary from client to client with the increase in the region of 20 percent.
Credit Suisse declined to comment according to the FT but said it was “adjusting its charges for precious metal accounts for financial institutions.”
Neither Credit Suisse nor UBS were available for immediate comment when contacted by Reuters.