Scott Murdoch and Anshuman Gag

HONG KONG, (Reuters) – Credit Suisse (SIX) The bank’s regional chief executive stated that Asia Pacific’s decision-making power will remain in Asia despite its previously distinct division being integrated into its broader structure.

According to the Swiss bank, Asia Pacific won’t be an independent division. The bank also said its wealth management units and investment banking would be combined into global sections as part of a reorganization of the bank.

Local bankers fear that the loss of autonomy may contribute to the bank’s declining market share within key Asian investment banking segments, according to two sources.

We have worked with global colleagues in Europe and America, on transactions that required global solutions for clients. The collaboration between APAC countries will continue. Credit Suisse Asia Pacific Chief Executive Helman Sitohang told Reuters that nothing will be changing on Monday.

According to sources, Credit Suisse’s Asia-based private bank is a significant difference for customers as well as bankers.

The structure gave senior managers the flexibility to decide on balance sheet lending and personnel promotions. This was in contrast with many regional private banks, who relied heavily upon their headquarters for important approvals.

According to one source, despite management’s assurances, concerns arose that risk-taking would be restricted and that decision making could slow down.

Sitohang stated that “as a region we remain empowered to make decisions related to market presence and key clients, as well as HR-related matters” and maintained their speed in decision-making and connection to global infrastructure required for certain deals.

Credit Suisse is one of the leading investment banks in emerging markets like Vietnam and Indonesia for many years. It has won numerous mandates from businessmen and families and was often supported by funding.

Credit Suisse estimates that Asia Pacific makes up about 20% of global revenue. According to data from Refinitiv, its share of the Asia Pacific investment banking market, which includes Japan, fell in 2021.

With a market share at 3.1% (down from 4.9% in 2020), the bank is ranked tenth on the mergers and acquisition league table.

In equity capital markets – a key driver of fee revenue in Asia – it has a 2% market share, down from 3.1%, the figures showed.

Sitohang claimed that Credit Suisse’s Asian investments banking performance has been “difficult” due to global headwinds. He referred specifically to scandals involving Greensill and Archegos, the supply chain financier.

He was optimistic that the company could recover.

He stated that the intention was to “come back strong and regain market position.”