Trump deregulation to have little impact on private banks, says UBP

UBP head of private banking acknowledges compliance is an ever present cost, but still targets higher growth in Asia region

Reading Time:3 minutes

Michael Blake, head of Asia Pacific for Union Bancaire Privée (left) and Michel Longhini, executive managing director, private banking for UBP. Photo: Handout

Published: 6:09pm, 12 Feb 2017Updated: 10:56pm, 12 Feb 2017

Regulatory changes in Washington that have boosted shares in investment banks will have little affect on private banks, globally or in Asia, according to Michel Longhini who heads global private banking for Switzerland based Union Bancaire Privée.

Nonetheless Longhini said that UBP, which acquired the Asian business of British private bank Coutts last year, is still planning further growth in the region. The bank is aiming to increase its assets under management in Asia to US$15 billion, up from the current level of approximately US$12 billion, but Longhini said this was just a “short term target”.

UBP is expanding at a time when the private banking industry in east Asia is consolidating, with number of other banks withdrawing from the region. These range from large universal banks like Barclays, which sold its wealth management operations to Singapore’s OCBC last year, to specialist private banks such as Edmond de Rothschild which is closing its office in Hong Kong. The challenge of meeting new, or newly enforced, regulations is often described by analysts and bankers as being a factor in this turbulence, due to the additional cost burdens it brings.

“Compliance is a clear global trend with which we have to live. I think the requirements on regulatory matters are increasing everywhere ... and are clearly an additional cost,” said Longhini.

“Though I hear that there is a certain president who might be changing that,” he added.

Earlier this month, US president Donald Trump ordered a major review of the banking rules that were put in place following the global financial crisis. While opposition Democrats argued against the policy, bank stocks rose on the news.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x

Trump deregulation to have little impact on private banks, says UBP

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}UBP head of private banking acknowledges compliance is an ever present cost, but still targets higher growth in Asia region

UBP head of private banking acknowledges compliance is an ever present cost, but still targets higher growth in Asia region