Banks in Switzerland don't have it easy: negative interest rates are eating into their profits, the Swiss housing market is in a froth, and digitization threatens to wipe out entire business areas once dominated by financial institutions. What else?

Consulting firm EY compiled a selection of worries and angsts among 100 top executives at Swiss regional, cantonal, and private banks as well as foreign lenders in Switzerland in its«Bankenbarometer 2019» (in German):

1. Housing Market

Seventy-six percent of the banks queried said the house-building boom and frothy rental prices pose a substantial risk for Switzerland's real estate market, compared to 71 percent last year.

The investment worry as well as a considerable vacancy rate likely worries more banks this year than last. If interest rates do tighten interest rates from historic negative levels, many new homebuyers will be caught unawares – which will ultimately hit banks.