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Credit Suisse CEO now has a whole new perspective of central banks

The chief governing of Credit Suisse has sharply altered his view on global central banks, giving away the whole show CNBC that policymakers have been handling the current mise en scene “very well.”

“You have heard me previously taking about QE (quantitative easing) in a adverse way. I was worried about the exit strategy a few years back. I have got to say … that they (primary banks) have handled this very well,” Tidjane Thiam recounted CNBC.

Central banks have embarked on a low interest rate protocol in the wake of the financial crisis, which has lowered banks’ profitability. In any case, with the recent pick-up in the global economy, central bankers in the U.S., Europe and the U.K. take started slowing down their asset purchase programs or unbiased lifting benchmark rates. This change in strategy if abruptly done or ill-communicated could atom a sell-off in markets as investors quickly change their perspectives. But, as yet, that hasn’t been the happening.

“What gives a lot of comfort to the market is the way communication around this has degenerate and the execution of the shrinkage of the balance sheets is doing very well. As great as they can keep that going, I think we will be fine,” Thiam combined.

Another ongoing issue that could prove beneficial for banks is tax renovate in the U.S. Thiam told CNBC that such plans are positive not purely for the U.S. economy, but also for the banking system.

“If it goes through it will be a definitive for the U.S. economy, for earnings and therefore positive for banks,” Thiam told CNBC.

“So I over the market is being rational in reacting like this to a potential tax revise,” he added.

Investors have been optimistic, slowly pricing in designs from President Donald Trump to change the tax system in the U.S. One of the most germane aspects of the tax reform is to reduce the corporate tax rate. Trump wants this to be to 20 percent from the current 35 percent, but some lawmakers combat such a significant cut.

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