Switzerland coped with the financial crisis better than most countries, according to a recent report from the Organisation for Economic Co-operation and Development (OECD)
The report praised the quick and decisive action of the Swiss National Bank and the government to contain the effects of the global crisis and subsequent recession
However, Switzerland is not out of the woods yet, with the financial sector still coping with the damage and unemployment set to rise this year.
Of particular concern to the OECD is the powerful influence of the two biggest banks, Credit Suisse and UBS, to the Swiss economy. Both contribute a high percentage of the gross domestic product (GDP) in relation to other countries.
While regulations have tightened, the report says that more must be done to control the banks’ influence on the economy.
“Prudential standards for the two largest Swiss banks will need to be above the average maintained by their peers in other countries,”
the report states.
“The existing cooperative arrangements with financial authorities in other countries need to be expanded for the largest Swiss banks and insurance companies and for crisis management in the event of future problems,”
the report added. (c) swissinfo
Useful link: Organisation for Economic Co-operation and Development (OECD)
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Economic Survey of Switzerland 2009: The OECD assessment and recommendations on the main economic challenges faced by Switzerland. An Economic Survey is published every 1½-2 years for each OECD country