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|Subject: Indians own 0.14% of total wealth is Swiss banks Tue Jul 10, 2012 1:51 pm|| |
Indians own 0.14% of total wealth is Swiss banks
NEW DELHI: WhileIndiansareallegedto have stashed large amount of worth black money in Swiss banks,the officialdataofSwitzerland'scentralbank,Swiss National Bank (SNB) puts the funds of Indian clients in Switzerland's banks at a modest 2.18 billion Swissfrancs(Rs12,700crore)which is just 0.14 per cent of total foreign wealth there.
Indians' money in Swiss banks rose for the first time in five years in 2011.
These official figures,described by SNB as 'liabilities' of Swiss banks towards their clients from various countries,do not indicate the quantum of themuch-debatedallegedblackmoney held by Indians or other nationals in the safe havens of Switzerland.
Also,SNB's figures do not include the money that Indians or other nationals might have in Swiss banks in others' names.
Noting the Swiss banking centre continues to face major challenges,SBAsaidagreaterfocuswasrequiredto tap additional growth opportunities.
This in turn would need "both political and regulatory improvements and better cooperation between authoritiesandtheinstitutionsbeingsupervised in the interests of the banking centre,"it said in its report titled 'Banking in transition - Future prospects for banks in Switzerland'.
"The main issue here is to further strengthen the innovative power of Swiss asset management so as to be able to continually come up with new ideas and products that are also attractive for foreign retail and institutional investors,"it said.
The SBA also called for steps to tap into "the dramatic growth in the economiesandlevelsofwealthinemerging markets and particular client segments (such as the opportunities arising with high net worth clients with assets of more than 100 million Swiss francs)".
Amid a growing global scrutiny of overseas funds deposited in Swiss banks,thequantumoftotalforeignassets managed by them has dipped by nearly 300 billion Swiss francs (about Rs 20 trillion) since 2008.
Also,the share of foreign client assets in Swiss banks dropped to 51 per cent of their total asset under managementattheendof 2011--thelowestin four years.
The foreign clients have traditionally been the mainstay of Swiss banks'wealth management business.But growing pressure from foreign governments for action against possible hoarding of illicit wealth in Switzerland has been acting as a dampener in the recent years.
As per the latest data compiled by Swiss Bankers Association (SBA),the apexbodyofbanksinthecountry,the totalassetundermanagementinSwitzerland stood at 5,300 billion Swiss francs at the end of 2011.PTI