Switzerland Bank Crisis - SPJCM

Slide 1: Swiss - Banking Crisis Presented By : Group 4 Abhisar Jain Anand Vikash Sandarbh Sachdeva Shweta Ghumre

Slide 2: "If you can actually count your money then you are not really a rich man."

Slide 3: Banking in Switzerland Characterized by stability, privacy & protection of Clients assets and information All Banks regulated by Federal Banking Commission Major Banks • UBS • Credit Suisse • Central Bank : Swiss National Bank • The Bank Leu (AG) in Zurich Swiss bank accounts famous for security and stability

Slide 4: Swiss Banking Crisis : 1991-1996 Growth Rate of Total Domestic Loan – 1980 - 1995

Slide 5: Factors contributing to crisis Interest payment tax free High LTV Low mortgage rates Price rise in the past two decades due to space constraints

Slide 6: Banking Crisis Fall in Real Estate Prices Fall in Mortgage Recession Collateral value Credit Crunch/ Write-offs of Unemployment loans in Banks/ Liquidation of Bank

Slide 7: Casuality from the crisis CHF 42 billion (roughly 8.5% of the total loan volume or more than 10% of Swiss GDP ) One bank had to be liquidated Merger of smaller banks with larger banks Only five state owned cantonal banks received taxpayers money

Slide 8: Problem Resolution Rapid closure of insolvent banks in case of no merger or acquisition Task force ‘Banking Structure’: The Task Force organized takeovers for banks threatened by bankruptcy 20 banks merged and gave up their independence SFBC helped to organize financial assistance through the Association of Regional Banks to cover potential loan losses

Slide 9: All logos are trademarks and copyrights , this presentation is made by students of SPJCM for educational purpose. Thank You