Swiss banking industry introduction
The Swiss Banking Industry
The Swiss banking industry has been around for more than 250 years, making it the cornerstone of the financial sphere. It has however been rapidly changing in the recent years, influenced by the latest financial crisis, and numerous tax evasion scandals. It has had to change its economic and regulatory conditions as the country's authorities, as well as foreign authorities are demanding for a change in practices. This, in turn, has put the industry in the spotlight possibly impacting its leading position in a variety of business areas.
The Swiss banking industry first established itself as a center for cross border trading in goods, with the companies "Hentsch & Cie" (founded in 1796), "Dreyfus" (1815), "Wegelin" (1741), and "Rahn & Bodmer" (1750) as the first private banks, implicated in the textiles industry or as subsidiaries. Swiss banks therefore began to grow off the ground by way of the riches or merchants who concentrated their activities in "trading in goods and articles of all types, collecting annuities and undertaking speculation in commodities"i. Although trading was profitable, the bank soon realized that for it to gain more from its activities, it would have to change its core business from trading to advising wealthy merchants and families in how to manage their assets.
The financial sector is the leading sector of all Swiss activities, and accounts for a wide range of business models. Banks in Switzerland can be classified by the assets managed and are divided into four categories. Global banks manage assets in excess of CHF 1,000 billion and employ more than 10,000 staff in their wealth management divisions. Large banks typically have over 1,000 staff and manage CHF 50 to 1,000 billion. Medium-sized institutions manage CHF 10 to 50 billion, and usually employ more than 100 staff in Switzerland. Small banks manage CHF 1 to 10 billion. Institutions with less than CHF 1 billion are not included. Furthermore, the
The Swiss banking industry has been around for more than 250 years, making it the cornerstone of the financial sphere. It has however been rapidly changing in the recent years, influenced by the latest financial crisis, and numerous tax evasion scandals. It has had to change its economic and regulatory conditions as the country's authorities, as well as foreign authorities are demanding for a change in practices. This, in turn, has put the industry in the spotlight possibly impacting its leading position in a variety of business areas.
The Swiss banking industry first established itself as a center for cross border trading in goods, with the companies "Hentsch & Cie" (founded in 1796), "Dreyfus" (1815), "Wegelin" (1741), and "Rahn & Bodmer" (1750) as the first private banks, implicated in the textiles industry or as subsidiaries. Swiss banks therefore began to grow off the ground by way of the riches or merchants who concentrated their activities in "trading in goods and articles of all types, collecting annuities and undertaking speculation in commodities"i. Although trading was profitable, the bank soon realized that for it to gain more from its activities, it would have to change its core business from trading to advising wealthy merchants and families in how to manage their assets.
The financial sector is the leading sector of all Swiss activities, and accounts for a wide range of business models. Banks in Switzerland can be classified by the assets managed and are divided into four categories. Global banks manage assets in excess of CHF 1,000 billion and employ more than 10,000 staff in their wealth management divisions. Large banks typically have over 1,000 staff and manage CHF 50 to 1,000 billion. Medium-sized institutions manage CHF 10 to 50 billion, and usually employ more than 100 staff in Switzerland. Small banks manage CHF 1 to 10 billion. Institutions with less than CHF 1 billion are not included. Furthermore, the