Dr Alex Widmer

Dr Alex Widmer, regional chief executive officer of Credit Suisse, explains, 'The only other true global private banking centre is Switzerland, and we think Singapore shares many of the characteristics of Switzerland. It is clearly superior to most of the traditional offshore centres, and offers all the features of a world class financial centre.

'Singapore is politically stable, it has the world's most competitive economy, the best rated legal system and is a leader in information technology. There are stringent client confidentiality laws, no taxation for non-residents, and robust anti money laundering laws. Like Switzerland, Singapore is neutral and has an international reputation as a safe and secure environment'.

In backing Singapore as an alternative offshore banking hub for the Middle East, and e-banking centre, Credit Suisse has taken a conscious decision to outflank the Channel Islands, why is this?

'We want to create an alternative to other offshore centres, such as the Channel Islands and Carribean, for the self-directed investor,' says the region's top Swiss banker. 'Our customers want to be sure that the longer term is taken care of, and Singapore offers all the advantages of a global financial centre for people based in the Middle East. It is in the right time frame and offers trading on all the major financial markets of the world.'

Credit Suisse First Boston recently concluded the takeover of the US brokerage DLJ. But what will happen to DLJ-Direct, the online trading house that has been quite successful in this region?

'Although this is a different part of the group, and I can not comment directly, this is part of the global consolidation of the banking industry,' says Dr Widmer. 'The DLJ acquisition fits our strategic focus. We did not want to be a global retail bank, for example. CSFB will focus on being an investment bank. For its part Credit Suisse will concentrate on serving clients with a net worth above $1m, although in Europe we have extended that to the $200,000 to $1m range, and that may happen in the Middle East as well.

'DLJ will be fully integrated into CSFB, and the name. It will become CSFB Direct. It is a great strategic fit, and extends our market share. We want to be in the top three to five investment banks of the world, and to make Credit Suisse the benchmark of wealth management'.

From the point of view of investment strategy for private and institutional investors, Credit Suisse is still a firm believer in equity-based investments. Dr Widmer sees the current weakness in blue-chip shares on the NASDAQ as a buying opportunity, and predicts a soft landing for the US economy. He believes the US market is not overvalued.

'I worry more about Japan,' says the Credit Suisse regional ceo. 'The Government has a problem with the debt/GDP ratio above 100%, and Japan is currently the country that has most lost its credit standing. One day the Government will have to stop its deficit spending and that will have global implications.'