Banking Industry’s Valuation May Fall Amid Disregard for Shareholders, Creditors' Rights, LBS Professor Says
Chen Xiyu | Zhang Yangyang | Chen Dongda
DATE:  Mar 24 2023

(Yicai Global) March 24 – Swiss banking giant UBS announced its acquisition of Credit Suisse nearly a week ago, and the market is still digesting the subsequent impact of this takeover. Vania Stavrakeva, an assistant professor at the London Business School who has long researched banking governance and financial regulation, expressed many concerns about the problems exposed by the Credit Suisse acquisition in an interview with Yicai Global. She believes that because the takeover overlooked the rights of shareholders and creditors at the operational level, it will lead to a contraction of the Contingent Convertible Bonds’ (CoCo Bonds) market and may further depress the valuation of the banking industry in the long term.

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Keywords:   UBS,Credit Suisse,Vania Stavrakeva,London Business School,CocoBonds