Credit Suisse is trying to lure investments from wealthy clients in Asia by offering higher deposit rates than its competitors, Reuters has reported citing people familiar with the development.
The move is also aimed at reducing outflows and halt the exiting of bankers from the beleaguered Swiss private bank.
It includes Credit Suisse offering a 6.5% rate per annum on new deposits of $5m or more for a period of three months, three unnamed sources told the publication.
The rate for the bank’s one-year deposits goes as high as 7%, added the sources.
A Credit Suisse spokesperson was quoted by Reuters as saying: “The banking sector has been responding to global rate hikes with higher rates and Credit Suisse is fully focused on providing our clients with differentiated advice and competitive solutions.”
The new offers are around 100 to 200 basis points more than those provided by the bank’s major rivals in the region, including JP Morgan, UBS and Citi Group, according to two of the sources and a senior wealth manager.
Representatives for JP Morgan, UBS and Citi did not immediately answer to requests for giving an update on the matter.
The latest development comes close on the heels of Credit Suisse being rebuked by The Swiss Financial Market Supervisory Authority (FINMA) for its poor handling of the business related to now defunct financier Lex Greensill and his companies.