September 18, 2019 / 2:19 PM / 3 months ago

UBS considering expanding corporate cash charges if SNB cuts rates

ZURICH, Sept 18 (Reuters) - Switzerland’s biggest bank UBS is considering charging a broader pool of corporate clients for cash holdings in its home country if the central bank drops rates tomorrow, the business’s manager told journalists.

Switzerland’s central bank will announce its latest monetary policy decision on Thursday. While most economists expect the Swiss National Bank (SNB) to leave its policy rate at the current -0.75%, about a third think it will follow the European Central Bank’s lead and cut rates further.

While UBS currently charges large businesses for any cash holdings exceeding their operational purposes, small and medium-sized enterprises have thus far been exempted, its head of Corporate & Institutional Clients Switzerland, Alain Conte, told journalists on Wednesday.

It may have to reevaluate if Swiss interest rates drop further, he said.

“The next discussion point will be tomorrow. We’re waiting to hear what the SNB will say,” Conte said. “We can’t yet say today whether we will change our policy or not.” (Reporting by Angelika Gruber; writing by Brenna Hughes Neghaiwi)

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