PRIVATE SWISS BANKING! WHAT’S THAT?
Living in Switzerland and particularly in the heart of Geneva one can hardly avoid the banking industry and particularly the Swiss Private Banking sector even though it is certainly discreet.
Many people ask what is special about Switzerland that banking is so embedded and so secret. So to answer this question I went direct to the horses mouth. I asked a senior partner of one of Geneva’s private banks. This is what he said.
“First of all it is important to understand that the private banking sector started for the first time in the world in Switzerland and Geneva at the time of the French revolution.” “Therefore private banking is endemic in the Swiss business culture.”
“ Another aspect is that Switzerland is in the centre of Europe and has a stable political and economic basis. It is neutral in world politics and upholds human individual rights to privacy. The latter point is the origin and the seed of private banking. Switzerland has an objective world vision and understands the need for a place or country which is at peace with all the world, which respects the need to speak frankly without fear or risk.”
“There are other additional factors such as Geneva being a centre of banking excellence and has been recognised as such for more than two centuries. Therefore there is a long heritage of tradition and experience.”
“Switzerland is also known for its excellence in engineering, from large projects to the most intricate, small and accurate control systems and watches. In addition it is certainly known for its prowess in the art of refined chocolate manufacture. It has a stable currency albeit that it does fluctuate slightly on the foreign currency market. Geneva is one of the worlds three oil trading centres. The other two being London and Dubai. Swiss companies also rank as world leaders in many industrial and other fields, including pharmaceuticals, food products, renewable energy to name a few.”
“Because of its long history for banking and private banking secrecy, there is a large pool of expertise with generations of families with banking know how in their blood. Geneva has over the past 30 years changed in many aspects including a notable shift in its climate, now resembling a Mediterranean city. It is a modern city that is also small by many standards. The international airport is ten minutes from the centre by taxi or bus due to its policy for developing perhaps the most modern and frequent public transport system in the world, which has priority vis a vis cars and lorries. Also the train from the central station only takes about 4 minutes to the airport. Trains from the airport terminus are destined for all parts of Switzerland and every train departure stops at Geneva’s central station before continuing its journey. Therefore whatever time you exit the airport, it is just a case of a few minutes walk to the station where there is almost certainly a train about to leave for the centre of Geneva. Trains from the central station also go direct to France with the TGV ( French high speed trains) leaving for Paris also Lyon and the south to Aix en Provence, and Marseilles. Swiss high speed and luxury trains also depart for Italy, Austria and Germany. The Swiss have a good sense of public support and at the same time business sense. For the moderate cost of a season ticket one can travel by train, bus, tram and ferry anywhere in Switzerland for half price.”
“Therefore Switzerland and particularly Geneva is convenient and also a very nice place to live and do business thus also a good reason for virtually every bank in the world wanting to have a slice of the Swiss banking cake and particularly the private banking sector.”
“It is estimated that 25% of the worlds wealth is in private hands and those people have a tradition of having their money managed in Switzerland. They have a confidence and trust in Swiss banks and particularly Swiss private banks. In today’s market Switzerland cannot claim to be better than any other country’s private banking system because banking expertise is world wide and completely interlinked.”
“Therefore what Switzerland and particularly Geneva has is tradition, trust, a highly developed banking security system and a pool of banking technology and expertise second to none in the world.
The privacy issue is something that is gradually disappearing as governments apply more pressure for private banking to be open to disclosing the interests of their nationals. However, the Swiss policy of having favourable tax laws compared with other countries also being open to negotiating tax levels with the wealthy bringing their money to Switzerland makes for a win win situation for Switzerland and its banking industry.”
“Certainly some of the Swiss private banks particularly those in the north of the country did make a mistake in the way they handled the Jewish gold issue of a few years ago but in general their aim is to make as few mistakes as possible. That was a wake-up call that the Swiss banking industry took very seriously. Consequently, while the secrecy issue is largely a thing of the past the atmosphere of secrecy and privacy remains. That is, insofar as the effort put into taking the utmost care of their clients gives the feeling of being a member of a most selective club.” Therefore any secrecy is more the case of privacy, discretion and absolute confidence in all but legal and fiscal obligations.”
End
Gaining access to Swiss private banks can be difficult and for many even intimidating. This is because those new to it just do not know what to do and can be prone to making the beginning stressful. Some Private banks will not even speak to a new enquiry without a reference from an existing client. Those with the funds but not the right connections can contact: info@build4u.ch to receive guidance and support to choose the bank most suitable and make the first contact and meeting.
Those wishing to become a private trader on the stock and futures markets can also be advised as to how to set up their own trading account with a Geneva Trading Bank.
Other articles on the Swiss Private Banking sector:
‘The Private Banking Saga and Switzerland’
‘The Secret of Swiss Private Banking is in ………………….’
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