Credit Suisse Shuts Down Philippine Office

MANILA, Philippines — Bangko Sentral ng Pilipinas (BSP), Credit Suisse AG, which is headquartered in Zurich, has officially terminated its Philippine office. Following the BSP's Monetary Board Resolution No. 709 dated June 20, the office, which commenced operations in June 2018, was forced to cease operations. On July 8, BSP Deputy Governor Chuchi Fonacier issued Circular No. 2024-035, which served as the announcement.

Ayala Avenue in Makati City was the location of the office. Credit Suisse and UBS, Switzerland's largest bank, amalgamated in May, resulting in the transfer of all assets, liabilities, and contracts to UBS AG. On a gradual basis, UBS intends to integrate the operational processes of both entities.

Previously, on January 31, Credit Suisse Securities (Philippines) ceased trading operations by withdrawing its registration as a broker-dealer. Application for suspension and revocation from registration were submitted to the Securities and Exchange Commission and the Capital Markets Integrity Corp., respectively. The corporation also submitted a cessation application to the Philippine Stock Exchange Inc.

From 1992 to the present, Credit Suisse has been a prominent financial advisor in the Philippines, offering a range of services, including capital raising, liability management, structuring finance, and mergers and acquisitions. Since its closure, nine foreign banks, including UBS AG, have maintained representative offices in the country.

Foreign bank closures have been frequent in the Philippines. In the midst of a global banking crisis in April 2023, the US-based Bank of New York Mellon closed its office. The COVID-19 pandemic has resulted in the closure of the Korea Development Bank Representative Office in December 2020 and the Manila office of Wells Fargo National Association in June 2021.

BSP authorizes foreign banks to establish representative offices in the Philippines to disseminate information regarding their services; however, they are prohibited from engaging in banking activities, including the acceptance of deposits and the trading of foreign exchange.