Swiss future as world banking center in doubt

• Source: Global Times
• [01:48 October 15 2009]
• Comments

Geneva's banks and trading houses are worried about the future allure of Switzerland as an international banking center, according to a new survey released Wednesday.

The annual poll conducted by Geneve Place Financiere, an association representing the city's nearly 6,000 financial firms, painted a darker picture than that normally voiced in Switzerland.

"The dominant sentiment coming from this survey on the present and future of the financial center is mitigated, even pessimistic," said Ivan Pictet, the association's president.

Switzerland wasn't responsible for the crisis, Pictet said. "The Swiss financial center has been the victim."

The senior partner at Geneva-based Pictet & Cie, one of the biggest private banks in Switzerland, said that while several poll respondents signaled the worst had passed for the banking sector, many expected more trouble and uncertainty ahead.

"The year 2010 should be a year of transition for the banks with more than 200 workers, or even a difficult year," he said. "No category is optimistic, frankly."

However, Pictet said Geneva banks kept attracting new European and Middle Eastern funds in 2009 "in spite of the violent attacks from abroad," a reference to US and G20 pressure on taxes and secrecy.

Switzerland is still the world's biggest offshore financial center with $1.8 trillion in assets under management in 2008, said a recent report.

Reuters