Credit Suisse: the worst of oil collapses behind
US, WASHINGTON (ORDO NEWS) — Credit Suisse will not suffer large losses from participation in the oil and gas industry, bank chairman Urs Rohner said.
“Our participation in the oil and gas industry is slightly larger than that of other European banks. But overall it is relatively small. I do not think this is a serious cause for concern,” Roner said.
Last Friday, Credit Feuerstein oil analyst Bill Featherstone wrote that the oil and gas industry may have gone through the worst crisis and can expect a recovery, although it will last a long time.
According to the data Reuters in the past few years, the second largest Swiss bank has been actively trying to establish ties with the oil and gas industry, but this was during a period of rising prices. Now everything can change.
Last week, Bloomberg reported that Credit Suisse is developing a review of its high-net worth customer loan segment. According to the report, the main point of the review will be focused on lending to customers related to the oil and gas industry and the shipping industry. These are the most vulnerable sectors at the moment.
A Swiss bank reported losses from “bad” loans and a decrease in asset value by $ 1 billion for the first quarter of the year.
Not only does Credit Suisse analyze its activities in the oil and gas industry. Many US banks are renegotiating relations with the heavily indebted shale oil sector, given that the fundamental factors in the oil market are not as great as they were when the debt was borrowed. International banks are starting to turn away from the oil market, moving to renewable energy sources. All of this is under pressure from governments, investors, and a growing wave of environmental activists.
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