Although the Swiss Banking community has been concerned the past couple of years due to increased European tax regulations and the interest in the private banking sector showed by upcoming Dubai and Singapore, it turns out that, despite these developments, the Swiss do not have to worry at all.

Private banking as well offshore banking have become more popular than ever in Switzerland. The biggest private banks in Switzerland show a steady growth since 2006, and the offshore banking sector is showing a comeback. Expanding markets in Eastern Europe and Asia are the main reason for the high demand in traditional Swiss private and offshore banking.

The Swiss banks have trouble, however, finding enough qualified personnel, which makes the private and offshore banking sector increasingly competitive. As Dubai and Singapore are starting to engage in private and offshore baking, this competition for excellent private bankers will only become more fierce.

Much of the action that makes the Swiss banks grow comes from Asia, Russia and the Middle East, deriving from the fast growing economies and high oil prices in those regions. It is in these regions that the Swiss seek to expand their banks, with branches and representative offices opening up in new locations such as Dubai and Singapore.

Source of this article: Financial Times: “FT Report- Private Banking: Much to smile about in climate of growth” by Haig Simonian, Financial Times. Published: Jun 20, 2007

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