Credit Suisse Group (NYSE: CSR; SWX: CSGN; XETRA: CSGZ) is opening a representative office in Tel Aviv. The Swiss bank has already rented offices in Tel Aviv’s Museum Tower. It will officially launch activity by the end of the year.
Credit Suisse said in response, “The bank plans to expand its activity in Israel, and recently obtained an investment marketing license company license from the Israel Securities Authority.”
The representative office of a foreign bank does not have a banking license, but is defined as a “business office”. A representative office can provide information, but may not conduct banking activity, except to channel customers to another branch of the bank.
Credit Suisse is Switzerland’s second largest bank, founded in 1856. The bank used to conduct mutual fund business in Israel with Bank Hapoalim (LSE: BKHD; TASE: POLI) and Bank Leumi (TASE: LUMI), and it now cooperates with Prisma Capital Markets Ltd.. The bank also manages foreign investments for the old pension funds (founded before January 1, 1995) that are subject to the pension arrangement managed by Yael Andoran.
Four foreign banks currently operate in Israel: Citigroup (NYSE:C), HSBC plc (NYSE;HBC; LSE:HSBA), the State Bank of India (BSE:500112), and BNP Paribas (Paris:BNP; Pink Sheets:BNPQY). None of these banks provide retail banking services, but only business services.
20 foreign banks have representative offices in Israel, including Deutsche Bank AG (NYSE:DB; XETRA:DBK), UBS (NYSE; SWX:UBS), and Union Banque Privee (UBP). France’s Credit Agricole SA (Paris:ACA) is due to open a representative office in a few weeks.
Published by Globes [online], Israel business news - www.globes.co.il - on August 8, 2007
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