Latest news with #SwissNationalBank
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First Post
19 minutes ago
- Business
- First Post
Modi crackdown impact? Deposits by Indians in Swiss banks 18% down in 10 years, SNB cites data
The data revealed that the Indian deposits in the bank saw a slight increase of 37 million Swiss francs last year. In 2023, the deposits stood at 309 million but rose to 346 million in 2024. read more Latest figures released by the Swiss National Bank (SNB) show that the deposits of Indian customers in Swiss banks has declined by nearly 18 per cent over the past 10 years. The deposits have now fallen to 346 million Swiss francs from 425 million in 2015. The data also shows that the deposits reached a whopping 602 million Swiss francs during the Covid-19 pandemic, the highest in the past decade. However, the figures sharply dropped as the pandemic withered away. STORY CONTINUES BELOW THIS AD Slight increase reported in 2024 The data further revealed that the Indian deposits in the bank saw a slight increase of 37 million Swiss francs last year. In 2023, the deposits stood at 309 million but rose to 346 million in 2024. However, the trend over the last decade showed a downward trajectory. Trend not unique to India However, the decline in deposits is not unique to India. Several other major economies have witnessed a reduction in funds deposit in Swiss banks by their nationals. For instance, deposits by UK nationals fell from 44 billion Swiss francs in 2015 to 31 billion Swiss francs in 2024. Chinese deposits also saw a decline, reducing from 5.01 billion Swiss francs to 4.3 billion Swiss francs over the same period. The neighbouring countries of India, Pakistan and Bangladesh also saw a decline. Over the past decade, deposits held by Pakistani nationals in Swiss banks have plummeted, falling from 947 million Swiss francs in 2015 to 241 million Swiss francs in 2024, a decline of nearly 75 per cent. A similar pattern is evident among Bangladeshi nationals, whose deposits dropped from 48 million Swiss francs in 2015 to 12.6 million Swiss francs in 2024, a reduction of over 73 per cent. This downward trend extends to other nationalities as well. Saudi Arabian deposits in Swiss banks nearly halved, decreasing from 8.3 billion Swiss francs in 2015 to 4.8 billion Swiss francs in 2024. The most dramatic decline was observed among American nationals, with deposits falling from 64.2 billion Swiss francs in 2015 to 24.4 billion Swiss francs in 2024, a drop of approximately 62 per cent. STORY CONTINUES BELOW THIS AD
Time of India
an hour ago
- Business
- Time of India
Why do Indians still increasingly rush to Swiss Banks to park their money
Swiss banks have long been a subject of political debate in India over alleged black money. However, experts argue that these institutions serve broader financial purposes. Former finance minister Arun Jaitley had said, 'Not all Swiss bank money is dirty.' The country's financial stability, favourable trust laws, and investor privileges continue to attract legitimate wealth. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads It isn't just black money Data sharing between India & Switzerland Tired of too many ads? Remove Ads The Alpine banks have not lost their charm. Indian money parked in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs (around Rs 37,600 crore), the Swiss National Bank (SNB) revealed on June 19. This is the highest level since of the increase came from funds held through bank channels and other financial entities, not individual customer accounts, news agency PTI said in a report. Deposits directly from Indian customers rose modestly — up 11% to 346 million Swiss francs (about Rs 3,675 crore). These deposits make up just one-tenth of the total Indian-linked to the SNB, the total CHF 3,545.54 million reflects all liabilities of Swiss banks toward Indian clients. This includes CHF 3.02 billion held through other banks, CHF 346 million in customer accounts, CHF 41 million via fiduciaries or trusts, and CHF 135 million in other instruments like bonds and contrast, these funds had dropped by 70% in 2023, hitting a four-year low of CHF 1.04 billion. The latest rise is therefore seen as a significant rebound, though still short of the all-time high of CHF 6.5 billion in SNB data is based on official reports by banks and does not reveal details about alleged black money or accounts held through entities in other countries. Swiss officials have repeatedly said these funds cannot automatically be labelled issue of alleged 'black money' held by Indians in Swiss banks has been a recurring topic in Indian politics, with political parties and leaders frequently pledging to 'bring it back.'But Swiss banks aren't just about the black money buzz — there's a bigger story behind the vaults. There is an element of truth in Arun Jaitley's words that 'not all Swiss bank money is dirty'.For the wealthy, Swiss banks serve as a safe haven during political unrest or currency crises in their home account is a ticket to the rich man's club that has its privileges — such as, access to investment opportunities where the entry level is higher for investors outside the club.A relatively stable currency shields the money from wild swings in the foreign exchange market. Trust laws in Switzerland are probably the best to pool and ring-fence family wealth — through offshore trust in which family members spread across the globe are named beneficiaries.'Assets held by Indian residents in Switzerland cannot be considered as 'black money',' Swiss authorities have stated. 'Switzerland actively supports India in its fight against tax fraud and evasion.'The landlocked Alpine country has now been sharing annual financial details of Indian residents since 2018 under an automatic exchange of information agreement. The first data transfer to Indian authorities took place in September 2019. Since then, regular information sharing has continued, including on accounts with suspected links to financial irregularities.'Such exchange of information has taken place in hundreds of cases so far,' according to Swiss Indian-linked money rose sharply, total foreign client funds in Swiss banks fell slightly to CHF 977 billion in 2024 from CHF 983 billion a year earlier. Indian clients held CHF 1.59 billion in assets by the end of 2023 — an increase of 9% rose to the 48th spot globally in terms of funds in Swiss banks, up from 67th last year. However, this is still below the 46th rank it held at the end of neighbouring countries, Pakistan saw a dip to CHF 272 million, while Bangladesh's funds rose sharply to CHF 589 million. Like in India, discussions around black money in Swiss accounts are sensitive topics in both countries.
NHK
5 hours ago
- Business
- NHK
Swiss National Bank cuts interest rate to zero as inflation slows
Switzerland's central bank has cut its interest rate to zero, a move that reflects a steady easing of inflationary pressure in the country. The Swiss National Bank said in a statement on Thursday that its policy rate will be lowered from 0.25 percent after inflation dipped to minus 0.1 percent in May. It's the bank's sixth consecutive cut since March 2024. The rate is now at the lowest since September 2022, when the bank ended a negative rate policy. The central bank added in the statement that the outlook for the global economy faces high uncertainty. It said developments abroad represent the main risk for the Swiss economy. The additional import tariffs imposed by the US this year triggered selling of the dollar and buying of Swiss francs as a safe haven asset. This has further lowered the cost of Switzerland's imports.
India Today
6 hours ago
- Business
- India Today
Indian funds in Swiss banks triple, banking routes see sharpest surge
Indian money parked in Swiss banks more than tripled in 2024 to 3.5 billion Swiss francs (nearly Rs 37,600 crore) on the back of a huge jump in funds held through local branches and other financial institutions, annual data released by Switzerland's central bank showed on money in customer accounts of Indian clients rose by only 11 per cent in the year to 346 million Swiss franc (nearly Rs 3,675 crore) and accounted for just about one-tenth of overall sharp increase in the overall funds follows a 70 per cent decline in funds parked by Indian individuals and firms in Swiss banks, including through local branches and other financial institutions, in 2023 to a four-year low of 1.04 billion Swiss francs. This is the highest since 2021, when the total Indian money in Swiss banks had hit a 14-year-high of CHF 3.83 are official figures reported by banks to the Swiss National Bank (SNB) and do not indicate the quantum of the much-debated alleged black money held by Indians in Switzerland. These figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country total amount of CHF 3,545.54 million, described by the SNB as 'total liabilities' of Swiss banks or 'amounts due to' their Indian clients at the end of 2023, included CHF 346 million in customer deposits (up from CHF 310 million at 2023-end), CHF 3.02 billion held via other banks (up from CHF 427 million), CHF 41 million (up from CHF 10 million) through fiduciaries or trusts, and CHF 135 million as 'other amounts' due to customers in form of bonds, securities and various other financial instruments (down from CHF 293 million).advertisementThe total amount stood at a record high of nearly 6.5 billion Swiss francs in 2006, after which it has been mostly on a downward path, except for a few years including in 2011, 2013, 2017, 2020, 2021, 2022 and 2023, as per SNB to the SNB, its data for 'total liabilities' of Swiss banks towards Indian clients takes into account all types of funds of Indian customers at Swiss banks, including deposits from individuals, banks and enterprises. This includes data for branches of Swiss banks in India, as also non-deposit the other hand, the 'locational banking statistics' of the Bank for International Settlement (BIS), which have been described in the past by Indian and Swiss authorities as a more reliable measure for deposits by Indian individuals in Swiss banks, showed an increase of nearly 6 per cent during 2024 in such funds to USD 74.8 million (nearly Rs 650 crore).It had dropped by 25 per cent in 2023, by 18 per cent in 2022 and by over 8 per cent in 2021, after rising by nearly 39 per cent in figure takes into account deposits as well as loans of Indian non-bank clients of Swiss-domiciled banks and had shown an increase of 7 per cent in 2019, after declining by 11 per cent in 2018 and by 44 per cent in peaked at over USD 2.3 billion (over Rs 9,000 crore) at the end of authorities have always maintained that assets held by Indian residents in Switzerland cannot be considered as 'black money' and they actively support India in its fight against tax fraud and automatic exchange of information in tax matters between Switzerland and India has been in force since 2018. Under this framework, detailed financial information on all Indian residents having accounts with Swiss financial institutions since 2018, was provided for the first time to Indian tax authorities in September 2019 and this is being followed every addition to this, Switzerland has been actively sharing details about accounts of Indians suspected to have indulged in financial wrongdoings after the submission of prima facie evidence. Such exchange of information has taken place in hundreds of cases so overall funds of foreign clients, including institutions, declined to CHF 977 billion in 2024, from CHF 983 billion at the end of 2023. In terms of assets, Indian clients accounted for CHF 1.59 billion at the end of 2023, an increase of about 9 per cent from the previous the UK topped the charts for foreign clients' money in Swiss banks at CHF 222 billion, it was followed by the US (CHF 89 billion) at the second spot and West Indies (CHF 68 billion) at the third three were followed in the top 10 by Germany, France, Hong Kong, Luxembourg, Singapore, Guernsey and the was placed at 48th place, up from 67th at the end of 2023, but below 46th place at the end of also saw a dip to CHF 272 million (from CHF 286 million), while Bangladesh witnessed a sharp increase from CHF 18 million to CHF 589 million. Just like in India, the issue of alleged black money in Swiss banks has been a political hot potato in the two neighbouring countries as Watch
News.com.au
11 hours ago
- Business
- News.com.au
Swiss central bank cuts interest rates to zero per cent
The Swiss National Bank cut interest rates to zero per cent on Thursday as inflation cools and the franc strengthens, while the economic outlook has deteriorated. The SNB, however, held off a decision to return to its era of negative rates — a policy that helped to curb the Swiss franc's rise but was unpopular among pension funds and other investors. The franc's movement is also under scrutiny in the United States, as the US Treasury Department added Switzerland to its watch list of countries likely to manipulate their currencies earlier this month. The Bank of England kept its key interest rate at 4.25 per cent on Thursday and Norway's central bank announced a surprise cut by a quarter point to 4.25 per cent. The decisions came a day after the US Federal Reserve maintained its benchmark borrowing costs unchanged, citing concerns over high inflation and slowing growth in the world's biggest economy. Gloomy outlook The SNB said its interventions in the foreign exchange market were not aimed at increasing the Swiss economy's competitiveness, but rather were attempts to ensure price stability. The Swiss currency is a safe haven investment that has climbed against the dollar since US President Donald Trump announced tariffs on imports in April. In Thursday's statement, the SNB — which has denied manipulating the franc — said it was still 'willing to be active in the foreign exchange market'. The SNB cited easing inflationary pressure in its decision to cut rates by a quarter point, but it also pointed to a gloomy economic forecast. 'The global economic outlook for the coming quarters has deteriorated due to the increase in trade tensions,' the central bank said, adding that the outlook for Switzerland remained uncertain. Karsten Junius, chief economist at the Swiss private bank J. Safra Sarasin, said it would 'not have been the appropriate time' to surprise the markets, and might even have 'harmed the SNB's standing' to do so. Cooling inflation The SNB said Swiss gross domestic product growth was strong in the first quarter of the year — largely due to exports to the United States being brought forward ahead of Trump's tariff manoeuvres. But stripping that factor out, growth was more moderate, and is likely to slow again and remain subdued for the rest of the year, the SNB said. The SNB expects GDP growth of one per cent to 1.5 per cent for 2025, and for 2026 too. The bank lowered its inflation forecast for 2025 from 0.4 per cent to 0.2 per cent, and for 2026 from 0.8 per cent to 0.5 per cent. Negative rates Between 2015 and 2022, the SNB's monetary policy was based on a negative interest rate of minus 0.75 per cent — which increased the cost of deposits held by banks and financial institutions relative to the amounts they were required to entrust to the central bank. Negative rates make the Swiss franc less attractive to investors as it reduces returns on investments. Overnight, the Swiss franc was down 0.02 per cent against the dollar and up 0.10 per cent against the euro. Adrian Prettejohn, Europe economist at the London-based research group Capital Economics, expected the SNB to move rates to negative 0.25 per cent at its September meeting due to deflation. 'There are also significant downside risks to inflation from trade tensions as well as heightened geopolitical uncertainty, which could push up the value of the franc further,' he said. Following the SNB's announcement, the Swiss franc rose slightly against the dollar and the euro. Switzerland's biggest bank UBS said it expected the SNB to keep its rate at zero per cent for the coming 12 months, and said the central bank's statement suggested it was 'not particularly worried about the current level of the Swiss franc exchange rate'. Kathleen Brooks, research director at the XTB trading platform, said that if the SNB wanted a weaker currency it was 'going to have to intervene directly in the foreign exchange market and sell francs, or it will have to reinstall a peg and defend the level it wants to achieve'.
