In addition to playing a key role in the domestic market, Swiss banks are exceptionally well positioned internationally. Their services are among Switzerland’s biggest export success stories: with a global volume of around 24 billion francs, they contribute 16 percent of the nation’s total service exports. They are the world leaders in cross-border wealth management for private clients: banks in Switzerland manage assets totalling 8,391.7 billion francs, around 45 percent of which come from abroad.

«With its earnings and profits, the financial sector also generates 20 billion francs in fiscal revenue.»

Capital market business and asset management also make a major contribution to this performance. Through its income and profits, the financial sector also generates around 20 billion francs of tax revenues – 12,5 percent of the entire amount paid to the federal government, cantons and communes.

Market access is crucial to success

Access to foreign markets is vital to ensuring that Swiss banks can continue to offer their services inter-nationally and maintain the competitiveness of the Swiss financial centre. However, differing regulatory requirements in target markets often hinder cross-border access. One example is the EU’s equivalence procedures: although Swiss financial market regulation is considered equivalent in key areas, EU recognition is often influenced by political considerations – as the failure to extend recognition of Swiss stock exchange regulation demonstrates.

«Swiss financial market regulation is considered equivalent in key areas, recognition by the EU is often politically influenced.»

Other jurisdictions, too, expect financial institutions to have a local presence in order to serve customers in the country concerned. At present, market access is frequently restricted to passive «reverse solicitation», which permits banks to respond only to direct approaches from customers. Maintaining competitiveness and market shares, however, requires active customer acquisition.

Solutions favoured by Swiss banks

To secure market access, Swiss banks rely on dialogue with partner countries as well as bilateral and multilateral agreements: these create legal certainty, reduce obstacles to market access, and promote collaboration between financial centres. The Swiss financial market is strictly regulated and implements international standards consistently.

«For the EU market, the banks are proposing a market access agreement based on the institution-specific approach.»

It is geared to transparency, competitiveness and financial stability. For the EU market, the banks favour an access agreement based on the institution-specific approach. This involves Swiss banks registering with a central EU authority and receiving a passport that allows them to provide banking and securities services throughout the EU/EEA.

In return, they undertake to comply with the relevant EU law, such as the conduct of business rules relating to investor protection, market integrity and a level playing field.

A milestone: the agreement with the UK

The banks support Mutual Recognition Agreements (MRAs) acknowledging the equivalence of both sides’ regulatory systems. These include areas such as customer protection and the integrity and stability of the financial centres. The Berne Financial Services Agreement (BFSA) between Switzerland and the UK is a successful example of how close collaboration and regulatory alignment can give rise to a productive economic partnership.

«The agreement between the UK and Switzerland is a successful example of  a fruitful economic partnership.»

The Agreement considerably simplifies cross-border wealth manage-ment, especially for private clients with assets in excess of 2 million francs, who account for a large share of this business. Once ratified, this innovation in financial services will create new market access models and drive the development of further agreements.

It is time to act

Market access is strategically important for Swiss banks to safeguard their leading position in cross-border wealth management. At the same time, geopolitical developments such as sanctions are posing big challenges for banks, creating new risks and potentially hindering or even entirely blocking access to specific markets.

Sustainable solutions must therefore not only take account of regulatory requirements in foreign jurisdictions but also include strategies for geographical diversification and opening up new markets. Collaboration between the authorities and the sector is essential. The BFSA is a pioneering example of how flexible and cooperative approaches can facilitate market access.

«We must take decisive action now to ensure that Swiss banks remain an export hit in the future.»

The long-term effectiveness of such agreements also depends on proactively embracing new developments, creating conditions conducive to success, and systematically implementing what has been agreed. We must now act decisively to ensure that Swiss banks remain export champions in future.