Economics Minister confident about Swiss financial market

Economics Minister Pascal Couchepin praised Swiss banking and said that Switzerland’s reputation as a financial market place remained intact. But the Swiss Bankers Association said at its annual conference that there were clearly image problems at home.

Economics Minister Pascal Couchepin praised Swiss banking and said that Switzerland’s reputation as a financial market place remained intact. But the Swiss Bankers Association said at its annual conference that there were clearly image problems at home.

Addressing about 600 bankers and business leaders in Zurich, Couchepin said there could be no question of easing Swiss banking secrecy, despite repeated criticism from the European Union and the Organisation for Economic Cooperation and Development.

The banking regulations in question are an integral part of Swiss financial legislation and are important for the Swiss market place, he pointed out.

Couchepin also rejected EU calls to harmonise capital gains taxation in this country since such a move would hamper competition.

Varying tax levels in Switzerland’s 26 cantons in part also serve as regulators for economic competitiveness, allowing less industrialized regions to attract businesses through tax incentives.

Swiss Bankers Association president Georg Krayer said he saw a “double strategy” behind EU and other efforts to eliminate tax competition among nations, which could lead to Switzerland being pressed to give up its secrecy law.

“Certainly, that can’t be the case,” he said.

Current legislation obliges bankers and other money managers to report suspected money laundering and freeze the assets in question. The authorities say such reports have quadrupled since stiffer regulations were introduced.

Addressing the issue of domestic banking, Krayer said Swiss banks suffered from an image problem at home.

The restructuring of the financial sector and related job losses were partly responsible for that, he said.

Many private customers or smaller businesses also felt they were not treated as well as big clients, Krayer added, urging the Swiss banking world to take adequate measures to change that perception.

From staff and wire reports.