Swiss Finance: Capital Markets, Banking, and the Swiss Value Chain

Conclusion and Outlook

Each of Switzerland's financial sectors has its own particular heritage and future, which will continue to be highly dependent on the nation's own economic growth and development and also on that of the world. As in the past, Swiss financial markets will need to adjust to global economic imbalances, an ever-moving regulatory pendulum, and increasingly significant participants, such as sovereign wealth funds, central banks, and government pension funds.

SWISS FINANCIAL MARKETS

Unlike many offshore centers, Switzerland's financial market is the result of long-term evolution rather than human design. It is a structure that has been built over a long period to accommodate the needs of investors looking mainly for a reliable legal system, trustworthy public institutions, and safety from political, economic, social, and currency instability and uncertainty.

Banking Secrecy

Swiss banking secrecy is often cited as a major cause of the nation's financial success, but Switzerland is not the only country with such laws. It is fair to say that all nations with developed financial markets have similar laws that protect the confidentiality of bank customers. Where Switzerland differentiates itself is in the nation's willingness, ability, and determination to adhere to and defend these laws.

During the past 15 years, the United States and some of Switzerland's neighboring countries have pressured Swiss financial institutions to reduce levels of banking protection for their ...