According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Switzerland is scored 89.7 out of maximum 100.0 and ranked 4th out of 144 analysed economies.
Chart 1. Financial Market Development in Switzerland. Source: WEF.
Soundness of banks is scored 6.1 bringing Switzerland into the 8th place.
Chart 2. Soundness of Banks in Switzerland. Source: WEF.
Banks in Switzerland are mainly focused on the following areas:
Swiss Financial Market Supervisory Authority
Currently there are 252 credit institutions operating in Switzerland.
In 2017 consolidated banking assets in Switzerland were 3,249.40 bln CHF. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Switzerland.
Recent structural changes (2013 - 2018) of the banking sector of Switzerland are summarised in Table 1.
|Number of Opened Banks||2||2||5||2||1||1|
|Number of Closed Banks||16||8||15||7||9||9|
Table 1. Recent structural changes in the banking sector of Switzerland.
The list of the most recently opened banks in Switzerland is provided in Table 2.
|MBaer Merchant Bank AG||January 2018|
|Industrial and Commercial Bank of China Limited, Peking, Zweigniederlassung Zürich||January 2017|
|Bank of America Merrill Lynch International Designated Activity Company, Dublin, Zurich Branch||January 2016|
|Credit Suisse (Schweiz) AG||January 2016|
|Bank of America, National Association, Charlotte, Zurich Branch||January 2015|
|UBS Switzerland AG||January 2015|
|CACEIS Bank, Paris, succursale de Nyon / Suisse||January 2015|
|Banque Internationale de Commerce - BRED (Suisse) SA||January 2015|
|China Construction Bank Corporation, Beijing, Swiss Branch Zurich||January 2015|
|IG Bank S.A.||January 2014|
Table 2. The most recently opened banks in Switzerland.
All the credit institutions operating in Switzerland can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||23|
|Institutions with a special field of business||5|
|Private bankers who do not actively seek deposits from the public||5|
|Regional banks and savings banks||60|
|Stock exchange banks||43|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Switzerland are summarised in Table 4.
Table 4. Deposit guarantee scheme in Switzerland.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Swiss franc) deposit ceiling for Switzerland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).