According to the Financial Times, executives at major Swiss banks have warned that the country’s decision to support Ukraine-related sanctions against Russia is having a negative impact on their business.
According to unnamed banking officials, wealthy Chinese clients are concerned about depositing money in Swiss banks after Bern abandoned its neutrality policy by freezing billions of dollars in Russian assets as part of sanctions.
The Swiss State Secretariat for Economic Affairs reported in February that sanctions had frozen $8.1 billion in Russian funds. Meanwhile, Credit Suisse, Switzerland’s second-largest bank, is said to have frozen more than $19 billion in Russian assets.
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“We were not only surprised, but shocked, that Switzerland abandoned its neutral status,” a board director who oversees his bank’s Asian operations told the Financial Times. “I have statistical evidence that hundreds of clients who were planning to open accounts are no longer doing so.”
According to reports, the media outlet spoke with executives from six of Switzerland’s ten largest lenders about their experiences with private clients.
“The issue of sanctions has come up with clients,” said another senior official. “It was definitely a topic of concern with clients late last year. They wanted to know if their money was safe with us.”
According to Anke Reingen, an analyst at RBC, the Swiss banking sector is the world’s largest destination for offshore wealth, accounting for a quarter of the global total and accounting for 10% of the country’s GDP.
According to another bank executive, Switzerland acted too quickly against Russian clients, and a line should be drawn between what the government should and should not get involved in.
