Credit Suisse has scrapped plans to set up a locally incorporated bank in China, according to people familiar with the matter. The decision comes as the Swiss bank faces a number of challenges in the country, including regulatory scrutiny and a slowdown in economic growth.
Credit Suisse had been planning to set up a locally incorporated bank in China for several years. The bank had applied for a license from the China Banking Regulatory Commission (CBRC) in 2018, and it was expected to receive the license in 2020. However, the CBRC has not yet granted the license, and it is unclear when it will do so.
The delay in granting the license is one of the reasons why Credit Suisse has decided to scrap its plans to set up a locally incorporated bank in China. The bank is also facing a number of other challenges in the country, including regulatory scrutiny and a slowdown in economic growth.
In recent years, the Chinese government has cracked down on foreign banks in the country. The government has imposed a number of new regulations on foreign banks, and it has also increased scrutiny of their operations. This has made it difficult for foreign banks to compete with Chinese banks in the country.
The Chinese economy is also slowing down, which is hurting the business of foreign banks in the country. The Chinese government has set a target of growing the economy by 6% in 2023, but many economists believe that the economy will grow at a slower pace. This will make it difficult for foreign banks to grow their businesses in China.
The decision by Credit Suisse to scrap its plans to set up a locally incorporated bank in China is a setback for the bank. The bank had been hoping to expand its presence in China, but the challenges in the country have made it difficult for the bank to do so.
It remains to be seen whether Credit Suisse will be able to overcome the challenges in China and expand its business in the country. The bank has a long history in China, and it has a strong relationship with the Chinese government. However, the challenges in the country are significant, and it will be difficult for the bank to overcome them.