<p><span>Today the <span>Switzerland</span> banking sector is experiencing not the easiest times.</span><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> <span>The global fight against tax evasions and fierce competition led to a rapid decline in the number of private banks.</span> <span id="result_box" lang="en"><span>Currently, about 70 Swiss banks are actually on the brink of survival.</span> <span>This is evidenced by the data given in the <span>KPMG</span> report, which evaluated the activities of 85 private Swiss banks out of 114. The largest banks in Switzerland - UBS and Credit Suisse - were not included in the number of surveyed.</span></span></span></p><p><span id="result_box" lang="en"><span>Earlier this year, data were published that the incomes of the Swiss banking sector decreased by 40% since 2015.</span> <span>The total <span>Switzerland</span> banks number decreased from 413 in 1995 to 261 in 2016.</span> <span>Among the main reasons are strong competition (both external and internal), regulation, technological development and general economic uncertainty in the world (including Brexit and US policy).</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span tabindex="-1">Despite this, Switzerland continues to attract new assets.</span> <span>So, in 2016 Swiss banks managed to attract assets worth 83 billion CHF.</span> <span>Nevertheless, large amounts of assets continue to be transferred from Switzerland to the east.</span> <span>And today, many experts have already expressed the opinion that very soon Singapore and Hong Kong can push Switzerland off the pedestal of offshore banking.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> </span></p><p><span style="text-decoration: underline;"><em><strong>Swiss banks is becoming less</strong></em></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span>Currently, 16% of the largest Swiss private banks have 80% from total number of assets managed by banks.</span><span> </span><span>In turn, 57% small banks under management are only 6% of assets.</span><span> </span><span>Small private banks in Switzerland survive, as statistics show, every year more difficult.</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span>Over the past six years, there has been an increase in the amount of assets managed by banks, but mainly through consolidation.</span><span> </span><span>At the same time, the total profit and profitability of operating income decreased.</span><span> </span><span>As a result, banks work with losses and gradually leave the market.</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span>In recent years, the <span>private Swiss banks</span> number has been steadily declining.</span> <span>If in 2005 there were 179, in 2017 - only 112. As a reason, experts call the decrease in operating profit and, in many cases, the outflow of client funds.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span>After Switzerland ceded under the <span>United States</span> pressure and other major economic powers, having begun to give little information about the financial accounts of foreign residents in Swiss banks, the number of bank customers began to decline.</span><span> </span><span>More than half of Swiss banks in 2016 experienced an outflow of funds, and the total losses amounted to about 43 billion CHF or 3% of the total number of assets under management.</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span>And according to experts, the negative dynamics will remain.</span><span> </span><span>That is, in the near future the number of private Swiss banks will become even smaller, and it is only a matter of time - how many more will their owners agree to suffer losses.</span><span> </span><span>On the other hand, the remaining banks will be able to strengthen their positions in a situation of less competition.</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> </span></p><p><strong><em><span style="text-decoration: underline;">The <span>Swiss banking</span>'s future</span></em></strong></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span>Of all the banks studied, only 10-15 demonstrated the potential for growth and attracting new customers.</span> <span>Another 20-30 banks could secure their future by concentrating on a separate niche.</span> <span>All the rest, according to experts, in the very near future either will leave the market, or will be consolidated to achieve adequate size.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span>In 2016-2017 the number of consolidations has sharply decreased.</span> <span>Large banks have become less interested in small transactions, in addition - the banks available for sale have become significantly smaller.</span> <span>Therefore, in the future we can expect consolidation mainly only among small and medium market players.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span>KPMG experts believe that in the coming years Swiss private banks will try to ensure their presence in the European market through the <span>local banks</span> absorption.</span><span> </span><span>The task of maintaining its presence in Europe is for private Swiss banks the most important and urgent.</span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span>Those banks that are on the verge of bankruptcy will most likely try to sell their assets as much as possible before liquidation.</span> <span>There is a strong possibility that Asian market players will be interested in absorbing Swiss banks.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3">  <span id="result_box" lang="en"><span>In turn, large international financial groups are already interested in the future of their subsidiaries in Switzerland.</span> <span>KPMG experts offer, as recommendations, a series of reforms that can help Swiss banks survive difficult times.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> </span><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> <span id="result_box" lang="en"><span>Among the main recommendations is a reorientation to the main markets and customers, a rethinking of the <span>wealthy customers</span> value from Switzerland, as well as investments in digital technologies and automation.</span> <span>An important element for a successful development strategy in today's situation in KPMG is the provision of additional private tax advice to <span>Swiss private banks</span> clients.</span></span></span></p><p><span style="font-family: Calibri; font-size: medium;" face="Calibri" size="3"> </span></p><p><span id="result_box" lang="en"><span>Despite today's difficulties, the Swiss Bankers Association believe that Swiss banks will stand - but only those that will be sufficiently stable and will be able to adapt to the new conditions.</span> <span>But they will also have to work hard to compete with Asian banks.</span></span></p>