Swiss Bank Deposits Witness Global Decline: A Decade of Financial Shifts
The Swiss National Bank's data reveals a significant decline in foreign deposits, including those from India, over the past decade, attributed to evolving global financial regulations, increased scrutiny, and transparency. Notable dips are seen in deposits from the UK, China, Pakistan, Bangladesh, Saudi Arabia, and the USA.
- Country:
- India
The latest figures from the Swiss National Bank (SNB) indicate a notable decline in deposits from Indian customers, with a nearly 18 per cent drop over the past decade. These deposits decreased from approximately 425 million Swiss francs in 2015 to 346 million Swiss francs in 2024.
Despite a significant increase during the COVID-19 pandemic, reaching a decade-high of around 602 million Swiss francs, Indian deposits in Swiss banks have generally been decreasing. By 2023, they had dropped to 309 million Swiss francs before a slight rise saw them reach 346 million Swiss francs in 2024. Nevertheless, the overall trend remains downward.
This downward trend is not exclusive to India, as other major economies, such as the UK and China, exhibit similar decreases. British deposits fell from 44 billion Swiss francs in 2015 to 31 billion in 2024, while Chinese deposits decreased from 5.01 billion to 4.3 billion Swiss francs over the same period. Additionally, Pakistan and Bangladesh experienced steep declines in their nationals' deposits, which fell by nearly 75 and 73 per cent, respectively.
Saudi Arabian and American deposits also shrank considerably, indicating a broader trend of declining foreign deposits in Swiss banks. Saudi deposits almost halved from 8.3 billion Swiss francs in 2015 to 4.8 billion in 2024, while American deposits saw a drastic reduction of about 62 per cent, falling from 64.2 billion to 24.4 billion Swiss francs over the decade.
The observed reduction in foreign deposits could be attributed to tighter regulations, increased scrutiny, and changes in international financial transparency norms. These global financial tendencies highlight growing transparency in financial systems, affecting countries' decisions regarding where to maintain their deposits.
For India specifically, the downward trajectory of its deposits in Swiss banks, despite a temporary surge during the pandemic, underscores the shifting landscape of international banking preferences and regulations. This decline is indicative of broader changes in global financial strategies and practices.
(With inputs from agencies.)
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