Banking in Switzerland
Banking in Switzerland, a small landlocked mountainous country located in Europe, constitutes the world’s foremost banking and financial centers with about 266 banks. Banking has been symbolic to this country apart from chocolates, mountains, and the alps. The Swiss banks are considered the world’s leader as they have a highly developed banking network.
Due to the neutrality and superiority of Switzerland, it serves as a safe and suitable environment for the banking sector. This nation sustained detachment throughout the two world wars therefore banking has played a vital role in the past two centuries in the economy of Switzerland.
The per capita gross domestic product is higher than most of the West European countries thereby creating a stable economy for the banking sector.
The Swiss Financial Market Supervisory Authority (FINMA) is a public ordinance establishment that regulates activities of the banking sector as well as activities of securities markets and investment of funds.
The regulatory sponsor’s Swiss banking Ombudsman Foundation assists people regarding their assets and investment, which is offered free of cost.
Every economy has a central bank that governs and regulates the banking sector with the aforesaid norms. To briefly clarify India has the Reserve Bank of India as a central bank, to know more go through my blog.
In the same way, the Swiss economy has its central bank which is known as the Central bank of Switzerland also known as the Swiss National bank(SNB). It was founded on 16 January 1906 but commenced its business on 20th June 1907. It oversees the working of all the financial institutions of the economy
There are numerous private banks as well as cantonal banks in the economy. The major difference between the two banks is that the owners of private banks are certain corporations or partnerships whereas cantonal banks are semi-governmental institutions.
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The two big banks in Switzerland which prominently dominate the banking sector of the economy:
This bank was incorporated in June 1998 based on the merging of two significant banks of Switzerland. The two banks that were urged were Union Bank of Switzerland and Swiss Bank Corporation which formed into USB group. The headquartered is are situated in Zurich and Basel. It is the largest bank in Switzerland with approximately seven offices around the world and branches in five continents.
It is the second-largest bank of Switzerland which came into existence in 1856. The headquarter is situated in Zurich. The primary functions of this organization are private banking, investment banking, and services on asset management. It is famous because multiple cases have been detected against money laundering services, tax evasion, and other fraudulent activities.
Due to the worldwide popularity, neutrality, and accurate working Swiss banking has occupied the global platform to cater and showcase its services. The estimated assets in the possession of Swiss banks are $ 6.5 trillion stating the well-off financial stability.