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MNI BRIEF: Rule Reform Needed After CS Takeover - SNB's Jordan

(MNI) London

The takeover of Credit Suisse by UBS creates a new banking environment, leading to "many discussions regarding future regulation" which will have to be looked at "very carefully," SNB governor Thomas Jordan said during a panel event Wednesday.

Regulators must probe how the collapse of the Swiss banking giant was exacerbated by the fast outflow of deposits, he added "and that is something that we will have to look at - how to avoid a run on deposits. but we have to do it in a deep way, not to hurry."

In the long-run, the direction of price pressures is "towards more of an inflation problem than a deflation problem," Jordan said. He cited green transition, demographic change, and increasing global economic and geopolitical fragmentation as key factors, though their effects may be partially offset by technological developments.

MNI Frankfurt Bureau | +49-69-720-146 |
MNI Frankfurt Bureau | +49-69-720-146 |

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