Bank Structure in Switzerland

Abstract

In Switzerland, most financial institutions are organized as universal banks. As in most other Continental European countries, banking legislation does not distinguish between commercial and investment banks. In principle, any institution authorized to operate as a bank may offer the entire gamut of banking services, including underwriting, securities trading, and portfolio management. The only exception is insurance, which needs a different license. In practice, only the largest banks may be characterized as truly universal banks; most of the smaller institutions are more or less specialized. In official statistics, Swiss financial institutions are classified into eight major groups: the four big banks, cantonal banks, regional and savings banks, Raiffeisenkassen, private banks, foreign banks, miscellaneous other banks, and finance companies. The 20 largest Swiss banks are listed in table 8-1.