Daniel Hayek and Mark Meili of Prager Dreifuss
look at the rules, practicalities and latest developments in
what continues to be a friendly environment for cross-border
Switzerland is home to approximately 250 banks with an
aggregate balance sheet of about CHF3.23 trillion ($3.25
trillion). Consequently, the Swiss cross-border financing
market is mature and well-developed. Local banks such as Credit
Suisse, UBS and the Zurich Cantonal Bank (ZKB) are the dominant
lenders when it comes to cross-border financing, but
international banks are also active in the Swiss market. This
is because the headquarters of large international groups are
located in Switzerland and also because borrowers frequently
have Swiss affiliates that grant security.
Since the global financial crisis, banks in Switzerland have
become stricter with regard to providing loans to companies.
This trend is reinforced by Basel III legislation, which
requires banks to hold more equity....