Financial System of Australia
Country : Switzerland
Swiss Financial System
In this part of the research, we will be looking into different aspects and institutions that make up the Swiss financial system. The Swiss financial system is large and well developed and plays an important part in Switzerland’s domestic economy and also internationally (IMF, 2007). Firstly, we will look into the different players in the financial system and also its regulatory body.
Swiss National Bank (SNB)
SNB was established in the year 1907 as an independent central bank for the Swiss confederation. Its stock is held mostly by public shareholders whom consist of cantons and cantonal banks which would be discussed later. The primary objective of SNB is to practice a monetary and currency policy which caters to the best interest of the country as a whole (SBA,2010). The SNB can also act as a lender of last resort to provide liquidity to other Swiss banks if certain prerequisites are met (SBA,2010). However, they do not have regulatory powers over the financial institutions in Switzerland as this is under the purview of the Swiss Financial Market Supervisory Authority also known as FINMA. This is somewhat similar to Australia’s regulatory body “APRA”. SNB does not focus on individual banks but focuses on the banking sector as a whole (Hildebrand, 2009).
Swiss Bankers Association (SBA)
Founded in 1912, the SBA is a trade association and is a self regulation organ and representative of the interests of banks in Switzerland. It is one of the most important institutions in the Swiss Financial Centre (SBA, 2010).
The Big 2
The 2 large banks that dominate the Swiss financial system are Union Bank of Switzerland (UBS) and Credit Suisse. These 2 banks are internationally focused and account for two-thirds of the Swiss’s global assets (IMF, 2007). They have branches and subsidiaries in over 50 countries and also maintain a tight network of domestic branches (SBA, 2010). UBS and Credit Suisse offer most services that
Swiss Financial System
In this part of the research, we will be looking into different aspects and institutions that make up the Swiss financial system. The Swiss financial system is large and well developed and plays an important part in Switzerland’s domestic economy and also internationally (IMF, 2007). Firstly, we will look into the different players in the financial system and also its regulatory body.
Swiss National Bank (SNB)
SNB was established in the year 1907 as an independent central bank for the Swiss confederation. Its stock is held mostly by public shareholders whom consist of cantons and cantonal banks which would be discussed later. The primary objective of SNB is to practice a monetary and currency policy which caters to the best interest of the country as a whole (SBA,2010). The SNB can also act as a lender of last resort to provide liquidity to other Swiss banks if certain prerequisites are met (SBA,2010). However, they do not have regulatory powers over the financial institutions in Switzerland as this is under the purview of the Swiss Financial Market Supervisory Authority also known as FINMA. This is somewhat similar to Australia’s regulatory body “APRA”. SNB does not focus on individual banks but focuses on the banking sector as a whole (Hildebrand, 2009).
Swiss Bankers Association (SBA)
Founded in 1912, the SBA is a trade association and is a self regulation organ and representative of the interests of banks in Switzerland. It is one of the most important institutions in the Swiss Financial Centre (SBA, 2010).
The Big 2
The 2 large banks that dominate the Swiss financial system are Union Bank of Switzerland (UBS) and Credit Suisse. These 2 banks are internationally focused and account for two-thirds of the Swiss’s global assets (IMF, 2007). They have branches and subsidiaries in over 50 countries and also maintain a tight network of domestic branches (SBA, 2010). UBS and Credit Suisse offer most services that