Credit Suisse’ Asian unit is reportedly planning to increase lending to first-generation business owners as part of its strategy to increase private banking services to the wealthy people in emerging markets as it scales back other private and investment-banking businesses.
The unit expects to hike such loans by 20% this year, Bloomberg quoted Francesco de Ferrari, managing director and head of the division, as saying.
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However, de Ferrari did not specify the amount. Proposed 20% would be acceleration from 2013’s 12%.
"Switzerland’s second-biggest bank is approaching Asia differently from second- or third-generation wealth in the U.S. or Europe," de Ferrari was further quoted as saying.
"In Asia, a lot more of the wealth is generated by first-generation entrepreneurs who are optimistic about the returns their businesses will yield.
"The last thing you want from a bank is for them to ask you to put funds to buy something with them. You actually want them to give you money," de Ferrari said.
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By GlobalData"When the entrepreneur becomes successful, the bank will aim to raise equity or debt for the business and build a personal treasure chest on the side," according to de Ferrari.
The next stage is to help structure that wealth to pass on to heirs and preserve the business, de Ferrari added.
