Swiss Banks – Sophisticated and Discreet Swiss Banking Services
Swiss Banks are characterized by their privacy, stability and protection of your assets and information.
The more than 400 banks in Switzerland have earned a worldwide reputation for providing sophisticated and discreet private Swiss banking services. Of course, all the banks are licensed by the Swiss Federal Government through its Banking Commission before they can do business. About 5,8% of the entire workforce or about 195,000 people are employed by the Swiss financial sector. Furthermore, the major Swiss banks employ several thousand staff abroad. The financial sector in Switzerland also exerts a major indirect influence on employment in other sectors of the Swiss economy. But with the financial crises underway, the bank secrecy, which dates back to the Middle Ages and was first codified in a 1934 law, is crumbling. In fact, Swiss private banking may never operate like it was before. There is increased pressure from the USA and the European Union demanding global automatic information exchange. Yet the USA and England who own tax havens such as Delaware, Cayman Islands, etc. should also be forced to exchange information. That way, the rules would be the same for everybody worldwide. However, the debt crisis in Europe and the Euro weakness has triggered again a rush of foreign investors to the financial center of Switzerland. It is happening at this moment, only a few months (Mid 2010) after the tax dispute with Germany about flee funds and data theft. But instead of deducting black money, the Swiss banks stand with the Swiss currency again high in favor of the Germans and the other countries of the European Union. The prove that the Swiss financial center is still perceived as a safe haven is very gratifying. With the strong Swiss franc, export is suffering a bit whereas forex brokers in Switzerland have become high in demand. Why do banks from Emerging countries come to Switzerland? The Brazilian bank giant Itaú is in the process to open locations in Zurich and Geneva. This after the financial institutions from the Gulf region and the Bank of China already received licenses in Switzerland. And more banking enterprises from dynamic emerging economies are following them. They realized that its citizens brought funds into the banks of Switzerland and now also want to participate in this business. There are also banks from emerging countries abroad that deliberately bring into play the label Swiss Banking for marketing purposes. But despite that, Switzerland and the financial centre in general will profit of this internationalization, because the European market is indeed stagnant.
What services do Banks from Switzerlandoffer? There are some banks that specialize only in a few banking services, while others provide a wide range. Like anywhere else in the world, individuals buy and sell stocks and bonds through their financing centre. However, if you are a corporate or individual customer with a need for managing your investment portfolios, you may look into the services that offer Swiss Private Banks.
Swiss National Bank The SNB serves as Switzerland’s central bank. It was founded by the Federal Act on the SNB on January 16th 1906. The shares of the Swiss National Bank are publicly traded and held by the Cantons, the Cantonal banks and by individual investors. However, the federal government does not hold any shares. Although a central bank often has regulatory authority over the country’s banking system, the SNB does not. This regulation is solely the role of the Federal Banking Commission.
Specialized Banking Groups
The Largest Financing Institutions As of 2006, there are about 408 authorized banks and security dealers in Switzerland. They rang from the "Biggest Two" down to small local branches serving only a town or a few wealthy clients. UBS AG and the Credit Suisse Group are the largest and second largest banks. They account for over 55% of the balance sheet total of all banks in Switzerland. For many clients, these two banks have got just too big. As a client, you are just another number even if you invest a large amount of your funds. Besides, the assets of both banks together are four times higher than the national GDP of Switzerland. To get more personal attention, choosing the service of Swiss banking with a smaller bank is recommendable. Universal Finance Companies The Swiss banking system is based on the model of universal banking. This basically says that every bank can provide all banking services, such as… • Deposit business (savings accounts, checking accounts, etc.) Universal banking in Switzerland operates exactly the opposite than in English-speaking countries and in Japan. These countries separate commercial banking from investment banking. Even in the United States, legislation is currently underway to liberalize this system. The advantages of universal banking include the ability to spread risk over a greater number of banking businesses and customers from all sectors of the economy.
The Raiffeisen Group The Raiffeisen Group is one of Switzerland’s leading retail firm. It is structured as a cooperative and over the years has positioned itself as the third largest branch network in Switzerland. The 350 Raiffeisen banks with 1,146 branches are represented in all of Switzerland and are characterized by their strong customer focus. Raiffeisen has more than 3,3 million clients of which 1,65 million are also cooperative members as co-owners of Raiffeisenbank. With 140 billion Swiss francs of banking assets, Raiffeisen places itself in third position of the Swiss banking market.
Cantonal Banks There are 24 Cantonal banks of Switzerland’s 26 Cantons that engage in all banking businesses. They are modern, independent institutions that are required to be managed in accordance with proper business principals. These banks are 100% majority-owned by the cantons, but differ from one another in their legal and organizational structure. They operate primarily in the market of their home canton, but are linked together nationally in the Cantonal Banking Group. Many of them are the market leaders in their own Canton.
All the Cantonal financing institutions together account for about 30% of banking business in Switzerland. Their combined balance sheet totals more than 300 billion Swiss francs. The largest bank is the "Zurich Cantonal Bank", which had a 2005 net income of CHF 810 million.
Private Swiss Banks Private Banking has a long tradition in Switzerland. In the mid 1700´s, the first private banks were created in the city of St. Gallen. Geneva Switzerland followed in the late 1700´s as partnerships of which some of the smaller banks are still in the hands of the original families such as Mirabaud and Hottinger. What exactly can a Private Swiss Bank do for you? Private banking offers you tailor-made banking solution, whether you are a corporate or a personal client. These services usually include the following… • Asset Protection
Private Banks are primarily associated with portfolio Swiss wealth management for private investors. They are providing expert advice, innovative products and holistic solutions for institutional and corporate clients as well as high-net-worth individuals and retail clients. Switzerland is a very solid jurisdiction with favorable laws to protect your assets and privacy using an Offshore Corporation Among the best private banks are Wegeling & Co, Bank Sarasin and especially Pictet & Cie, one of Switzerland’s largest private banks.
How To Open a Account There is no Swiss legal restriction, which prevents non-residents from opening a Swiss Bank Account. However, residents from some countries may be prohibited by their own country from having such an account. Generally, the Swiss banks consider a number of factors before they decide whether they accept a new client. If there is only a hint of money laundering, a Swiss bank will reject you. Because of US legislation, US citizens cannot open a Swiss bank account anymore. For more information about Swiss Bank Accounts, click here. So if we Swiss don’t trust our banks, how can anyone? And if you can’t trust a Swiss bank, what can you trust? Didn't find what you were looking for? Use this search feature to find it.
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