Confidentiality Tops in Customer Poll
Variety is the Spice of Swiss Banking

Banks as a whole enjoy a very good image in Switzerland. 59 percent of those polled take a positive view of their financial institutions and 67 percent believe the banking industry to be the economically most important of Switzerland's economic sectors. For the first time these positive attitudes have also been recorded in French-speaking Switzerland, an area formerly quite critical of the financial sector. Furthermore, approximately four out of five respondents judged the competitiveness of the Swiss financial centre to be higher than - or at least equal to - that of foreign competitors. And once again a clear majority (79 percent) of Swiss support bank-client confidentiality. These are some of the findings of this year's opinion poll carried out for the Swiss Bankers Association by M.I.S.-Trend of Lausanne.

The banking sector enjoys a very good image in Switzerland, with 59 percent of respondents describing their attitude towards banks in Switzerland as “very positive“ or “positive“. This positive value has now stabilized at the high level recorded in last year's poll. In a new departure, this year's positive findings have also been recorded throughout French-speaking Switzerland. On virtually all issues this year's opinion poll found the picture in French-speaking Switzerland to be similar to that found in the country's two other language regions, namely German-and Italian-speaking Switzerland. And once again a majority (67 percent) believe the banking sector to be the economically most important of Switzerland's economic sectors (2006: 64 percent). This finding was echoed when respondents were asked about the significance of banks as employers: 83 percent (2006: 81 percent) believe jobs in the banking sector are important for the Swiss labour market. A new subject in this year's poll concerned the commitment of banks to supporting cultural, social and sporting events and 63 percent of those polled believe that banks make a valuable contribution in these areas.
The Swiss financial centre also scored well on the international front. 89 percent (2006: 84 percent) believe that the Swiss financial centre enjoys a good professional reputation abroad. For the first time this year's poll raised the subject of the international competitiveness of Swiss banks. 78 percent judged Swiss banks as being at least equal to their foreign counterparts in terms of competitiveness, with 54 percent saying they were actually more competitive. About a quarter of respondents were of the opinion that Swiss banks would become even more competitive in the future. And, once again, an overwhelming majority (79 percent) of respondents supports Swiss bank-client confidentiality. In an international context, 73 percent (2006: 76 percent) said they assumed that international pressure on bank-client confidentiality was likely to increase in the future. However, the majority (76 percent) expressed the clear view that there was no question of Switzerland caving in to international pressure and giving up the principle of financial privacy (2006: 72 percent).

Variety within the Swiss banking system
Apart from numerous other qualities, the Swiss banking system is noted for its variety. The Swiss banking system is based on the concept of universal banking, whereby all banks can offer all banking services. Nevertheless, it has seen the development of different bank groups that have come to specialize in certain areas.
The Swiss universal bank offers it all
The Swiss banking system is based on the model of universal banking. This means that all banks can provide all banking services, such as:
• credit/lending business
• asset management and investment advice
• payment transactions
• Deposit business (savings accounts, etc.)
• securities business (stock exchange transactions)
• underwriting business (issuing of bonds)
• financial analysis
This is directly opposite of banking systems in English-speaking countries and in Japan which separate commercial banking from investment banking. Legislation is, in fact, currently underway in the United States to liberalize the system.
The advantages of universal banking include the ability to spread risk over a greater number of banking businesses and customers from all sectors of the economy. \

Specialized bank groups
Banking in Switzerland is extremely diverse, even though it is based on the principle of universal banking. Several bank groups are now fully or partially specialized:
The "big" banks
The two "big" banks - UBS AG and the Credit Suisse Group - together account for over 50 percent of the balance sheet total of all banks in Switzerland. UBS AG is the world's leader in wealth management and also Switzerland's leading bank for individual and corporate clients. It is also an important global player in investment banking and the securities business. Credit Suisse is a leading global bank headquartered in Zurich. Credit Suisse is renowned for providing expert advice, holistic solutions and innovative products to a wide range of corporate and institutional clients and high-net-worth individuals globally, as well as retail clients in Switzerland.

Cantonal banks
Formerly one to two per canton, there are today a total of 24 Cantonal banks (in Switzerland's 26 cantons and half-cantons); Cantonal banks are semi-governmental organizations with a state guarantee. Liberalization is currently underway with respect to the state guarantee. Despite their close connection to the state, cantonal banks must comply with commercial principles in their business activities. Their objective, according to cantonal law, is to promote the canton's economy. Field of activity: engaged in all banking businesses; emphasis on lending/deposit business.

Regional banks and savings banks
Smaller universal banks with an emphasis on lending/ deposit business. These banks voluntarily restrict their activities to one region. Advantage: customer proximity -- they are acquainted with local circumstances and with regional business cycles.

The Raiffeisen Group
The Raiffeisen Group consists of affiliated independent banks with strong local roots and which are organised along cooperative lines. They have a history of more than a century. The Raiffeisen banks have the highest number of branches in Switzerland and they are all affiliated to the Swiss Union of Raiffeisen Banks. The Union has the strategical leadership of the whole Group and is responsible for the Group's risk management. The Union also coordinates the Group's activities, provides on-the-ground framework conditions for the business activities of the individual local banks (e.g. IT, infrastructure, refinancing) and advises and supports them in all matters so they can concentrate on their core business, namely advising clients and selling banking services. The Raiffeisen Group is one of Switzerland's leading retail banks and has significantly increased its market share over the past few years.

Private banks
Among the oldest banks in Switzerland. Legal form: individually owned firms, collective and limited partnerships. Private bankers are subject to unlimited subsidiary liability with their personal assets. Field of activity: asset management, chiefly for private clients; as a rule, private banks do not publicly offer to accept savings deposits.

Foreign banks
Foreign-control means that over half of the company's votes are held by foreigners with qualified interests. Origin of banks: Europe, predominantly EU (over 50%), Japan (around 20%). Fields of activity: foreign business (share of foreign assets in the balance sheet total is 70%), asset management.

Other banks
This bank group includes banks with various business objectives, such as: institutes specializing in the stock exchange, securities and asset management businesses; commercial banks: as a rule, these are universal banks for which mortgage investments play a significant role, in addition to commercial loans to trade, industry and commerce; and consumer credit institutes: institutes specializing in small loans (to private individuals and the industry).