Given the study published by the SBA on Thursday morning, it was no surprise that President Marcel Rohner addressed the impact of geopolitics on Switzerland’s banking sector during the well-attended Bankers' Day in Geneva, fittingly held at the Maison de la Paix.

«The prosperity of the financial sector is closely tied to Switzerland's foreign and economic policy and its position in the international community,» Rohner emphasized in his speech. He noted that even in the last century, there were periods of great uncertainty. Back then, trust in Switzerland's security, stability, and reliability—especially among foreign clients—was a key success factor for the financial center.

Geopolitics Shakes the Foundations of Banking

In his address, Rohner touched on areas seemingly unrelated to the banking sector’s core business: neutrality, supply security, Switzerland's defense capability (which he deemed inadequate), and the global trade order. However, these factors are crucial for economic and political stability, a prerequisite for Switzerland's prosperity.

Switzerland must minimize critical dependencies in energy, trade, and security as much as possible to preserve political flexibility. Rohner gave an example, saying only those who can protect their country and population on their own will be perceived as credibly neutral by other states.

Minimizing or Diversifying Dependencies

Rohner also advocated for the signing of bilateral free trade agreements. Such agreements, he said, are the most effective way to secure free market access, build lasting partnerships, and diversify dependencies.

Referring to a recurring issue in the financial sector, Rohner recalled that the SBA had already called for a systematic and predictable approach to sanctions in 2023. He stated, «Switzerland must take a more proactive stance to avoid completely passive adoption of problematic and contradictory measures.»

«No Completely Passive Adoption of Sanctions»

Rohner also touched on domestic issues, emphasizing Switzerland's institutional pillars. Federalism, consensus democracy, and direct democratic participation are the foundations of Switzerland’s high attractiveness as a business location and its economic success, which makes the welfare state financially viable.

Rohner also defended property rights, criticizing popular initiatives such as the inheritance tax and questioning the enforcement of sanctions. If assets are confiscated without a court trial or the application of regular legal processes, it would call into question the guarantee of property rights.

No Doubts About the Protection of Private Property

«It is crucial for the financial and banking sector that there be no doubts about the status and protection of private property in our country in the future», Rohner asserted.

He also addressed regulatory issues and the Credit Suisse (CS) crisis. Lessons need to be learned from the CS case, and the SBA supports appropriate corrective measures. However, Rohner cautioned against overregulation.

The swift intervention by authorities during the CS crisis not only stabilized the financial sector quickly but also generated international goodwill, according to Rohner. However, this interpretation may not resonate with everyone.