Credit Suisse Group AG joined larger rival UBS Group AG in triggering margin calls on wealthy clients who use Russian assets as collateral, after their value slumped in the wake of extensive sanctions imposed on the country.
Switzerland’s second-largest bank is asking rich customers to post more collateral after cutting lending values on Russian securities, according to people familiar with the matter who requested anonymity to discuss internal information.
Other banks with wealth management arms including Banque Pictet & Cie SA have also cut lending values, Bloomberg reported earlier.
The extent of the margin calls and whether all have been met wasn’t immediately clear. But the speed of the Russian invasion of Ukraine and the response by the U.S. and Europe has left wealthy individuals invested in Russian assets facing frozen funds and demands for more collateral.
Credit Suisse declined to comment.