Diversified financial services company, Credit Suisse, has opened a new branch in Luxembourg. The new operation will focus on managing part of the bank's liquidity portfolio and will give Credit Suisse direct access to a national central bank within the EU.

The main activity of the new branch will be the management of the EUR-denominated part of the Credit Suisse liquidity portfolio. The branch in Luxembourg will allow Credit Suisse to hold its euro-denominated liquidity paper in a eurozone country, thus giving it direct access to a national central bank within the EU.

Furthermore, the new branch will permit Credit Suisse to benefit from the wide range of securities accepted by the European Central Bank for rediscounting. This offers particular advantages in light of the new capital adequacy requirements under Basel II.

The Basel II accords are a set of minimal capital requirements for banks that will become a compulsory regulatory requirement for all European banks, ten US banks and banks in various countries in Asia from Jan 1, 2007.

Credit Suisse has been represented in Luxembourg by Credit Suisse (Luxembourg) SA since 1974. Its staff of around 130 provide traditional private banking services. In addition, Credit Suisse Asset Management and Winterthur both have operational units in Luxembourg.