“Swiss banking” is comprised of the ‘Two Big Banks’ (UBS AG and Creidt Suisse), as well as another 406 authorized banks and securities dealers, cantonal banks, private bankers, etc.  Almost all banks accept foreign investors and depositors, subject only to Switzerland’s rules on client privacy and anonymity.

UBS AG and Creidt Suisse are the country’s largest and second largest banks, accounting for almost 50 percent of all Swiss deposits, as well as having extensive branch networks around the world.

The “Two Big Banks”

UBS AG is the result of a merger in 1998 between the Union Bank of Switzerland (established in 1862) and the Swiss Banking Corporation (established in 1872).  With headquarters in Zurich and Bassel, it is Switzerland’s largest bank in terms of deposits, and has seven main offices around the world and bank branches on all continents worldwide.  Four of its main offices are in the United States, with the others located in London, Tokyo and Hong Kong.  Its main line of business includes asset management, private banking (investment services for individual clients), and investments.

UBS AG reported net profits of 7.2 billion US dollars, over $100 billion in market capitalization, and almost 70,000 employees worldwide in 2005. 

Credit Suisse, on the other hand, was founded in 1856 and established its first overseas branch in New York in 1940, and reported market capitalization of $61.7 billion in 2005 and about 63,000 employees worldwide.  Credit Suisse’s main line of business is asset management across a full spectrum of investment activities, including real estate, hedge funds, equities and so on.

Swiss National Bank

The Swiss National Bank serves as the country’s central bank, responsible for monetary policy, the issuance of the Swiss Franc banknote and supervision of the Swiss Interbank Clearing (SIC) system, an electronic payment system operated under a joint venture.

Unlike other central banks, the Swiss National Bank does not exercise any regulatory authority over other banks; its shares are publicly traded with the majority held by public institutions such as cantonal banks and the Swiss cantons, the rest are traded on the stock market or held by private investors.  The Swiss government does not hold any shares in the bank.

Cantonal Banks

There are 24 cantonal banks in Switzerland – government-owned commercial banks that use the canton (the Swiss equivalent of a province or a US federal state) as the guarantor of its assets held within the canton.  They are regulated and supervised by the Association of Swiss Cantonal Banks, based in Basel.