Banking in Switzerland

Banking in Switzerland is regulated by the Swiss Financial Market Supervisory Authority (FINMA), which derives its authority from a series of federal statutes. The country's tradition of bank secrecy, which dates to the Middle Ages, was first codified in the Federal Act on Banks and Savings Banks, colloquially known as the Banking Law of 1934. The regime of bank secrecy that Swiss banks are famous for came under pressure in the wake of the UBS tax evasion scandal and the 1934 banking law was amended in 2009 to limit tax evasion by non-Swiss bank clients.

In 2011, banks represented 59.4% of the total value added of the Swiss financial sector, totalling CHF 35.0 billion representing 6.2% of the country's GDP.UBS and Credit Suisse, the two largest banks in Switzerland, were ranked globally at #19 and #25 among banks, with assets of approximately US$1.375 trillion and US$1.090 trillion, respectively.

As of 11 October 2008, the banking industry in Switzerland has an average leverage ratio (assets/net worth) of 29 to 1, while the industry's short-term liabilities are equal to 260 percent of the Swiss GDP or 1,273 percent of the Swiss national debt.

Switzerland

Switzerland (/ˈswɪtsərlənd/), officially the Swiss Confederation (Latin: Confoederatio Helvetica, hence its abbreviation CH), is a country in Europe. While still named the "Swiss Confederation" for historical reasons, modern Switzerland is a federal directorial republic consisting of 26 cantons, with Bern as the seat of the federal authorities, called Bundesstadt ("federal city"). The country is situated in Western and Central Europe, and is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland is a landlocked country geographically divided between the Alps, the Swiss Plateau and the Jura, spanning an area of 41,285 km² (15,940 sq mi). While the Alps occupy the greater part of the territory, the Swiss population of approximately 8 million people is concentrated mostly on the Plateau, where the largest cities are to be found: among them are the two global and economic centres, Zürich and Geneva.

The establishment of the Swiss Confederation is traditionally dated to 1 August 1291, which is celebrated annually as the Swiss National Day. The country has a long history of armed neutrality—it has not been in a state of war internationally since 1815—and did not join the United Nations until 2002. Nevertheless, it pursues an active foreign policy and is frequently involved in peace-building processes around the world. In addition to being the birthplace of the Red Cross, Switzerland is home to numerous international organizations, including the second largest UN office. On the European level, it is a founding member of the European Free Trade Association, but notably it is not part of the European Union, nor the European Economic Area. However the country does participate in the Schengen Area and the EU's single market through a number of bilateral treaties.