Banks Fret Over Prospects
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2. Loan Losses
Switzerland has, of course, escaped the horrible loan loss provisions which have saddled rival European banks since the financial crisis. This may change: risk provisions for lending to Swiss small- and mid-sized companies will rise in the mid-term, 35 percent of survey respondents said.
In the long term, more than half of them – 53 percent – believe that SME loans will have to be wiped out because firms can't repay.
