Some useful facts
Swiss banks make a significant contribution to value creation in Switzerland and provide jobs for highly skilled workers. If they are to continue doing so, they must remain internationally competitive. For Switzerland to maintain its leading position, it is essential to ensure market access so that Swiss banks can export their services from Switzerland to EU markets and growth regions outside Europe without facing discrimination.
The three types of market access:
- Onshore presence: serving foreign customers through a subsidiary or branch in their home country
- Active cross-border: serving existing foreign customers and actively acquiring new ones from Switzerland
- Passive cross-border: providing existing foreign customers with standard services and acquiring new ones only when they approach the bank themselves
Importance of market access
Market access is vital for banks in Switzerland to preserve their important business with foreign customers in the following areas:
- Private banking: Switzerland is the world leader in cross-border wealth management. Almost half of the assets managed in Switzerland originate from foreign-domiciled customers.
- Asset management: Swiss banks can manage foreign-based collective investment schemes, provide institutional asset management for foreign-based pension funds, and sell Swiss financial products abroad.
- Corporate banking: Market access makes currency transactions as well as bond and equity issuance abroad easier for Swiss banks.
Challenges facing export-oriented Swiss banks
Restrictions on market access are increasingly hampering export-oriented banks’ efforts to meet customers’ needs and keep value creation, jobs and tax revenues in Switzerland. Key target markets have in recent years adopted protectionist rules that severely restrict cross-border financial transactions. Without regulated market access, Swiss banks are at a clear competitive disadvantage compared with their EU rivals. Losing business with foreign customers would erode value creation, employment and tax revenues in Switzerland.
Free trade agreements and the Swiss financial centre
The SBA also supports the conclusion of free trade agreements, which are a key instrument of Swiss foreign trade policy. They make Switzerland more competitive and prosperous over the long term, benefiting the country’s people and economy as well as its financial centre. They also open up new growth opportunities for exporters and scope for specific agreements on financial services.