Bern, Switzerland (GenevaLunch) – The Swiss government says it will assume a greater role in creating good conditions for the country’s financial institutions to continue their leading position in global finance. A report prepared by the finance ministry was accepted by the Federal Council (cabinet) WEdnesday 16 December.

Bern noted the importance that Switzerland’s financial centre plays in the country’s economy: finance contributes almost six percent to employment and 10 percent to GDP.

Among the measures the governments will implement are:

• create a state secretariat for international financial affairs within the Federal Department of Finance (FDF) and an inter-ministerial task force to implement the report’s proposals
• closer engagement in multilateral bodies that set the international financial regulatory framework, to help shape international standards that apply to Swiss financial institutions
• insist on a level international playing-field: Switzerland’s financial market is broadly accessible to foreign players, while  Swiss bankers are increasingly subject to restrictions abroad
• examine carefully the systemic risks posed by two large banks dominating the Swiss banking industry, while noting that their size also gives Switzerland weight globally
• possibly introduce a withholding tax on accounts held by foreigners, the proceeds of which would be distributed to clients’  governments without revealing the names of the account-holders.

Links to other sites: “Strategic directions for Switzerland’s financial market policy”, NZZ

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