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Banks and financial institutions play a key role in the Swiss economy. The Swiss franc is among the world’s most stable correncies. The Swiss capital market is one of the most important in the world, and the two major Swiss banks – UBS and Credit Suisse – are major forces in the global financial market.
In 2009, the Swiss financial sector employed 195,000 people, or 5.8% of the entire Swiss workforce. In addition, the major Swiss banks employ several thousand staff overseas. The Swiss financial sector also exerts a major indirect influence on employment in other sectors of the Swiss economy.
The Swiss are also world leaders in offshore private banking. In 2007, they managed close to 27% of all private offshore funds. Indeed, one third of UBS and Credit Suisse profits are generated by their offshore banking services.
The Big Two
At the end of 2008, there were 327 banks in Switzerland, including branches of foreign banks. However, the home market is dominated by two banking goliaths - UBS und Credit Suisse. Together their share of domestic deposits and loans stands at over 30%, and their total assets are some six times higher than Switzerland’s Gross Domestic Product (GDP).
Cantonal banks
Switzerland’s cantonal banks are independent financial institutions. There are 24 cantonal banks in Switzerland, i.e. one for every
canton, with the exception of Solothurn and Appenzell Ausserrhoden. The cantons either own the bank outright or are the majority stakeholder. Historically, the role of these banks was to strengthen and support the economy of their home canton through the provision of low-cost loans. These banks still operate primarily in their home canton, but are linked together nationally in the Cantonal Banks Group.
Private banking
Private banking is a centuries-long tradition in Switzerland. The first recorded private bank dates back to the 17th century. Private bankers assume unlimited liability for their business; if they go bankrupt, they can lose their entire private fortune. With the evolution of the banking market, private bankers are facing ever stiffer competition from the major banks, which now offer similar services.
Cooperative banking
Switzerland also has a network of cooperative banks, with 537 branches mainly in smaller towns and villages. Based on the “Raiffeisen model”, all branches operate completely independently, and their members not only take part in decision making but also bear joint responsibility for the fortunes of their branch.
Islamic banking
The first Islamic private bank, the Faisal Bank, opened in Genevain 2006.
Targeting wealthy non-Swiss and Islamic customers, it offers asset management services compatible with Islamic banking practices. Several Swiss banks now have branches in the Middle Eastoffering similar services.
Private banking is a centuries-long tradition in Switzerland. The first recorded private bank dates back to the 17th century. Private bankers assume unlimited liability for their business; if they go bankrupt, they can lose their entire private fortune. With the evolution of the banking market, private bankers are facing ever stiffer competition from the major banks, which now offer similar services.
Cooperative banking
Switzerland also has a network of cooperative banks, with 537 branches mainly in smaller towns and villages. Based on the “Raiffeisen model”, all branches operate completely independently, and their members not only take part in decision making but also bear joint responsibility for the fortunes of their branch.
Islamic banking
The first Islamic private bank, the Faisal Bank, opened in Genevain 2006.
Targeting wealthy non-Swiss and Islamic customers, it offers asset management services compatible with Islamic banking practices. Several Swiss banks now have branches in the Middle Eastoffering similar services.