Credit Suisse reports brighter Swiss financial sector outlook
The Swiss financial sector has faced several crises and structural changes since 2007, but wealth management is doing well, says a Credit Suisse study released on Friday.
This content was published on
2 minutes
SDA-ATS/cl
While the sector has successfully weathered a global financial crisis, low interest rates, a clean money policy and a flood of regulations, these challenges have taken a toll, Credit Suisse said.
The study showed that the financial sector’s contribution to Switzerland’s gross domestic product (GDP) fell from over 11% in 2007 to 9% in 2017. Employment in the banking sector dropped to around 215,000 full-time equivalents, the study showed. In ten years, 70 institutions have left the Swiss financial market, of which 40 were foreign banks.
Wealth management forecast
Going forward, the sector should benefit from an improved global market environment, Credit Suisse noted, adding that the Swiss market is expected to play a leading role in global growth of the wealth management business. The international wealth managed in Switzerland is predicted to rise from the current CHF2,700 billion ($2,720 billion) to almost 3,100 billion by 2021, according to the authors. That of domestic clients should go from about CHF3,300 billion to 3,700 billion in the same period.
However, margins in the credit business will remain weak, even if interest rates rise again, according to Credit Suisse. Competition will remain strong in terms of credit operations, while mortgage activity should slow down.
Regulation and market access
The Credit Suisse experts included some recommendations for regulations on implementing international standards, access to the European market, and sustainable finance and digitisation. They said they would also like to see the Federal Council become more involved in setting international standards. In the short term, the bank calls on Switzerland to adopt regulations equivalent to those of the EU, and to actively negotiate bilateral accords with key markets – notably Great Britain.
Swiss foreign minister backs Berset at Council of Europe
This content was published on
Cassis described Berset as the "ideal candidate" to help the Council realise its aim of ensuring security and peace in Europe.
Gay conversion therapy banned in Swiss canton of Valais
This content was published on
On Thursday, the canton approved a new Health Act which includes a ban on therapies aimed at changing sexual orientation or gender identity.
This content was published on
Some aspects of pro-Palestine sit-ins have gone too far, but the right to protest and debate must be upheld, the student association has said.
Swiss LGTBIQ helpline: attacks more than doubled in 2023
This content was published on
Three organisations jointly operating a helpline have called for more awareness, action and funding to address discrimination.
This content was published on
Switzerland's economy grew slightly at the start of 2024, with growth in the service sector contrasting with weak growth in industry.
Swiss employment rate rises in first quarter of 2024
This content was published on
The number of women and foreign nationals in employment increased particularly strongly, the Federal Statistical Office said on Thursday.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Don’t be taken in by UBS’s new-found Brexit optimism
This content was published on
Does the Swiss bank’s new-found optimism, and its explanation of “regulatory and political clarifications”, reflect a genuinely brighter outlook?
This content was published on
Credit Suisse Chief Executive Tidjane Thiam earned slightly less in 2017 during his third year on the job, the bank said on Friday.
Financial officers’ outlook recovering after ‘Frankenshock’
This content was published on
Some 53% of the chief financial officers (CFOs) questioned for the study said they had a positive outlook on their company’s financial future, while 12% remain pessimistic. Pessimism stood at 20% in a similar survey done last quarter. And, 40% of those surveyed expect their company’s capital expenditures and the number of employees to grow…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.