The banks are a pillar of the Swiss economy. In 2018 the sector generated value-added of around CHF 33 billion, or about 4.7% of the country’s GDP. If the value-added generated by the insurance sector is also included, the financial sector contributes about 10% to Switzerland’s GDP.

In 2018, the number of full-time equivalent employees in the financial sector was 204,300, some 105,000 of whom worked in banks. As well as the direct contribution to GDP, the regionally diverse banking sector provides the Swiss economy and the population with loans and other financial services.

There are 253 banks in Switzerland (2017). The two banking giants UBS and Credit Suisse have an approximate 50% share of the market. The remaining 50% is mostly divided among the 24 cantonal banks, foreign banks, Raiffeisen banks, investment banks, regional banks, savings banks and private banks.

Geographically, there is a marked concentration of jobs in the main centres of the country: Zurich, Basel, Berne, Lausanne, Geneva and Lugano.

The banking tradition in Switzerland dates back to the 16th century, but it was only after the two world wars that the country became a leading international financial centre. Stability, neutrality and a strong Swiss franc, as well as the establishment of banking secrecy in 1934 were some of the factors that led to an influx of capital from abroad. The second half of the 20th century was a period of major growth for the banking sector. Between 1980 and 2005 the value-added generated by the financial industry grew by 3.5% year-on-year, while the rest of the economy grew by only 1.3%.

Switzerland is one of the most important financial centres in the world. In terms of cross-border private banking, Switzerland was the world leader in 2017, with a market share of 27.5%. In 2017 Swiss banks managed assets worth over CHF 7.9 trillion, of which around one half were from abroad.