Banking

Swiss Banking System

The word combination “Swiss bank” is a synonym of reliability nowadays. The bank secrecy is very important in Switzerland, and this is one of the main reasons why wealthy people all over the world prefer to keep their property at Swiss banks. The activity of all banks in Switzerland is controlled by the state organization which calls the Swiss Financial Market Supervisory Authority (FINMA). The banking system is characterized by stringent regulations. Both banks and bank-type finance companies need to be registered with the Federal Banking Commission (FBC). The Federal Banking Commission, together with the Swiss National Bank exercises a rather stringent control over the functioning of banks. Due to the fact that the FBC also regulates the bank not trading business any bank wanting to involve in the banknote business has to obtain the approval from the Commission. In the course of a trend towards liberalization of financial markets banking fees were liberalized. The banking sector plays a major role in Switzerland as it provides more than one third of the tax revenue of all enterprises and about 20% of the taxes paid by companies and private individuals together. There are more than 600 banks present in Switzerland, so all major international banking institutions are represented here. Banking in Switzerland is based on the principle of universal banking. The bank system in Switzerland significantly differs from the ones at other countries. Usually the main bank profit in Switzerland is so-called management fee, which the bank gets as the reward for managing the client’s possessions.

Open an account with Us

Swiss law permits to open bank accounts for the foreigners who are above 18 years old as well as for the residents of Switzerland. Nevertheless, Swiss bank may decline your wish to open a bank account. Nowadays Swiss banks are very picky with the non-residential clients to avoid money which come through money laundering and other illegal ways, so there is always high risk not to manage a Swiss bank account opening. That’s why so important to have a trustworthy domestic intermediary who is able to negotiate with the bank and to be a trustee for its clients. Any currency can be used for your bank account opening. However, a withholding tax exists for those earnings which you obtain while using your bank account if the account currency is Swiss Frank. So, mostly non-residents prefer US Dollar or Euro for the Swiss bank account opening.To open a bank account some minimum balance exists, this is the sum which should be always on your balance until its getting closed. This sum is different in every bank and also depends on kind of your bank account.