Switzerland Hurt as Private Banks Leave Due to Rising Compliance Versus Secrecy
Switzerland, the former Mecca for European lenders when it comes to private banking is now hurt with the change in banking secrecy and the rise in compliance. Many private banks are bidding Switzerland farewell because of the rising costs for set agreements and the onslaught to bank secrecy continues.
Current number for foreign owned banks established in Switzerland fell to 129 as reported May of 2013. There is a noticeable decline since there was an estimate of at least 145 established banks at the start of the 2012.
Many banks prefer to exit Switzerland since many of the foreign players in the banking and business world are taken aback with the new iron clad rules established in the country. Examples of banks taking a leave from Swiss transactions would be ING Groep NV which disposed of their private bank established in Switzerland early 2009 along with Commerzbank AG who sold their Swiss units in the same year.
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