CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Swiss Cantonal Bank Troubled By Non-Performing Loans

Swiss Cantonal Bank Troubled By Non-Performing Loans

by Ulrika Lomas, Tax-News.com, Brussels

21 December 2001


Banque Cantonale Vaudoise, Switzerland's fifth largest bank, this week said it expected to make a SFr390m loss for the year after writing off SFr1.7bn in non-performing loans. The bank said it would raise SFr600m in new capital in 2002, with the support of the Cantonal government, which owns more than 50% of its equity, in order to repair its balance sheet.

The bank blamed an inadequate provisioning technique for the problem, which stems from a period of economic difficulty in the early 1990s which affected many local companies. The Federal Banking Commission has demanded an explanation from the bank's auditors Ernst & Young as to why they had signed off on the bank's provisioning in previous years.

Although the bank has made forays into private banking in recent years, its primary role has been to support the local economy, and there must be worries that it has been unduly influenced by its political masters in making loans to support firms in trouble. 85% of its lending is concentrated in Vaud. Now the pigeons are coming home to roost.

Last year Ernst & Young was criticised for its auditing of the cantonal bank of Geneva, which had to be saved in similar circumstances by the cantonal government.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »