Banks/Banking in Switzerland
Banks in Switzerland are controlled by the FINMA (Swiss Financial Market Supervisory Authority). It derives authority from federal statuses. The industry of banking in Switzerland has average ration, while the short-term liabilities are nearly 260% of the GDP of Swiss. Swiss banks and post office employ electronic payments prominent as SIC( Swiss Interbank Clearing).
This banking system is managed by the Swiss National Bank. However, in 2005 SIC handled more than 250 million transactions showing a turnover of 41 trillion Swiss francs.
The top banks in Switzerland as per 2008 include 327 authorized banks as well as securities dealers ranging from two big banks to small banks serving special clients and single community. The largest Swiss banks are Credit Suisse and UBS AG.
They account for more than 50% deposits in Switzerland and have extensive branch networks within the country as well as in major international centers. However, owing to the complexity and size, both these banks, Credit Suisse and UBS are subjected to additional degree of supervision by the Federal Banking Commission.
UBS AG, the largest Swiss bank has seven main offices (4 in the U.S. and 1 in Tokyo, Hong Kong and London) and branches in five continents. Credit Suisse, the second largest is based in Zurich having a market capital of $95.2billion as on 2007. This group offers investment banking, private banking and asset management services.
Swiss National Bank (SNB) serves as the central bank of this country. It began its business in 1907 and is held by cantonal banks, individual investors and cantons. Although, the regulatory authority is with the Central Bank over the banking in Switzerland, yet SNB does not regulate, and this is done by the Federal Banking Commission.
Private bank offers banking services and the first private banks originated in 1700s in St.Gallen and Geneva as partnerships, while some are in original families like Mirabaud and Hottinger. Private banks in Switzerland are known as private bankers and this is done to differentiate them from other private banks that are typically shared corporations. Cantonal banks are semi-governmental organizations that are state-guaranteed and are controlled by 26 cantons that are completely engaged in banking businesses. The Zurich Cantonal Bank is the largest with CHF810 million net income as per 2005.