In the News

Banks Divided

The government’s decision to ease bank secrecy rules sparked fear in the hearts of many private bankers; concerned investors would start pulling out money in search of safer havens. The new ruling has highlighted a division in the Swiss bank community between the larger, Zurich-based banks and the smaller Geneva banks.

Smaller banks are concerned that the new tax laws limit their ability to remain competitive as many lack the resources to develop new networks in neighbouring countries or high growth regions. Large rival banks such as UBS and Credit Suisse do not have a similar problem and have spent significantly on expanding their efforts in those new business markets.

Smaller private banks called on the government in March 2009 to pass regulatory and tax reforms to keep Swiss banks competitive.