Swiss financial centre remains strong even in turbulent times
The shockwaves hitting financial markets following the announcement of US trade tariffs prove once again that geopolitical tensions and economic policy decisions can quickly have a far-reaching impact. The Swiss financial centre remains robust and stable, even when plummeting global share prices unsettle investors.
Demand for Swiss wealth management services has been growing recently, and the strong franc is a sign that faith in our financial system is unbroken. The uncertainties in industry are likely to be felt in commercial banking. However, there is no denying that market volatility is weighing on customer assets. This is affecting all market players, including banks in Switzerland.
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Dr Martin Hess, SBA Chief Economist:
“The current market correction is an expression of very high geopolitical and trade policy uncertainty. The Swiss financial centre remains stable and resilient.”
Given the current situation, it is essential for political and economic decision-makers to look ahead and consider a range of future scenarios. This applies to the financial sector just as much as political circles. The Swiss economy is in a good position compared with the rest of the world: it is in sound health overall, our companies are flexible, our banks resilient.
At the same time, however, Switzerland clearly remains vulnerable as an exporting nation. These latest US tariff increases, which are arbitrary and unjustified, are fuelling uncertainty throughout the economy. Far from being confined to industry, they also hurt the financial centre via second-round effects. Price movements among financial stocks are not unusual in phases of global uncertainty and have little to do with institutions’ long-term strategy or stability.
We welcome the Federal Council’s calm and pragmatic response. In a tense environment, stable frameworks, legal certainty and open markets are indispensable. It is also vital to avoid unnecessary regulation and additional burdens on companies in order to secure Switzerland’s competitiveness against a more challenging backdrop.
The banks in Switzerland contribute substantially to a strong economy and thus to stability through responsible risk management, sustainable business models and a focus on long-term customer relationships. Even in difficult times, the Swiss financial centre remains a reliable and trustworthy partner.