Swiss banks

2.10.2022
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банки швейцарии

What associations do you have with Switzerland? Most likely, it’s a watch, cheese, and a bank. Financial institutions in this country are ahead of the rest of the world in terms of reliability. In this article, you will learn which banks are considered the most reliable and how they managed to achieve this.

Swiss banks are considered the world’s most important financial institutions, and the banking structures of developed countries are guided by them. The country’s banking system combines long-standing foundations and a focus on the transnational financial market.

Today, a bank in Switzerland offers a wide range of products, among which the organization, investor and individual can easily find the right option. The choice of bank depends on the purpose of opening a bank account. Each depositor must specify it in advance. You may need an account for your company or personal use, etc. Regardless of the purpose, opening an account can take anywhere from 1 to 7 days.

Most businesspeople and investors prefer these financial institutions because they provide:

  • security and safety of your financial resources;
  • perfect quality of service delivery.

Currency regulation and issuance of Swiss francs are carried out by the National Bank of Switzerland. The banking system is represented by:

  • large system banks;
  • cantonal banks;
  • regional banks;
  • foreign banks.

By law, Swiss banks are not required to work with non-residents. Each bank independently decides whether to open a deposit to persons who do not reside in Switzerland or not.

Swiss banks and deposit guarantees

swiss banks

According to the agreement on the protection of deposits in Swiss banks, depositors can only count on the safety of 100 thousand francs. In reality, this guarantee has some financial limitations. Esisuisse can respond to deposits of up to 6 billion francs across all banks in the Confederation.

Any depositor wants to be sure that they are opening an account with a reliable bank, regardless of where they are located. However, it should be understood that any bank can declare itself suddenly bankrupt.

Swiss Bank Hottinger & Cie is the oldest institution. It began its activity in 1777. It was closed at the request of FINMA, because it did not meet the capital adequacy conditions. The bank suffered very large losses, which were explained by losing trades of specialists. As a result, each client with a bank deposit received insurance in the amount of 100 thousand Swiss francs.

In situations where an investor invests his or her savings in securities, when a financial institution goes bankrupt, the investment portfolio will be returned to him or her in full. This is due to the fact that securities, metal accounts, as well as bullion of precious metals, are not listed either on the balance sheet or in the bankruptcy estate of a financial institution. Thus, the best way to save capital is through securities and precious metals.

Best Swiss banks

Bank Switzerland was attractive for a very long time because it guaranteed the depositor’s secrecy. But over time, banks have found other ways to raise capital from outside.

At the moment, asset management is considered one of the most important tools of the bank, and it was it that ensured the success of the Swiss financial sector. A bank’s assets are all funds that it manages.

Cantonal banks and PostFinance Bank are the most reliable representatives of the banking segment. Cantonal banks are a special prerogative group of financial institutions, their deposits have a double guarantee. On the one hand, the return of deposits up to 100 thousand Swiss francs is guaranteed by the Insurance Fund, and on the other hand, the state. In simpler words, cantonal banks are reliable even with deposits exceeding 100 thousand francs. The possibility that the state will go bankrupt is very small, and the shareholders can at any time give the go-ahead for an additional issue of money and, thus, give a second chance to the cantonal bank.

Today, banking is considered one of the most widespread and developed areas in the service market. The reliability of a financial institution indicates how safe it can avoid default as much as possible.

swiss banks rating

Swiss banks the list of very stable institutions looks like this:

  • UBS;
  • Raiffeisen;
  • Credit Suisse;
  • Lombard Odier;
  • UBP;
  • LGT;
  • Safra Sarasin;
  • Vontobe.

To be included in the list of the best Swiss banks, you must meet the following conditions::

  • equity from 1 billion rubles.in Swiss francs;
  • capital adequacy ratio of 23 or more %;
  • assets of $ 5 billion or more.in Swiss francs;
  • performance and profitability over the past 10 years.

Which financial institutions are included in the rating of Swiss banks?

best swiss banks

The rating of Swiss banks is presented by the most stable financial institutions. International agencies constantly evaluate the credit rating of Swiss banks. The current rating of Swiss banks is very high, as they have shown the world that they can effectively manage their borrowed funds.

A credit rating is a kind of assessment of a financial institution’s ability to meet its financial obligations. You can also use your credit rating to determine whether an institution is in danger of default or not. The credit rating also shows the risk associated with debt obligations, such as loans, bond issues, etc. When choosing a foreign bank, an investor should definitely pay attention to its rating. At the moment, many Russian banks do not have a credit rating, however, they work in the market and are developing.

This assessment is mainly needed by large banks that need to issue a credit line from the state. In addition, there is an investment rating that shows the bank’s liquidity. If a foreign banking institution has a subsidiary in Switzerland, it will have the same rating as the parent representative office.

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