“Swiss Private Banks Face Consolidation Wave: Survey”
In an article reported March 18, 2009 by Reuters and featured in newspapers around the world, Booz & Company analysis shows that managers at Switzerland’s private banks believe the current economic crisis is the worst since 1924 and could lead to a wave of industry consolidation. “Top bankers said the severity of the crisis added to other factors would force the industry to change fundamentally, but many banks have no clear strategy going forward,” said Booz & Company Partner Carlos Ammann (Europe). The report, “Private Banking: Beyond The Perfect Storm,” was based on a survey of 20 top executives in Switzerland’s private banking sector conducted in January and February 2009. The report determined that the main effects of the crisis were still to be seen because market losses had caused a large reduction in assets and led to a significant erosion in margins. “The bankers surveyed all agreed there would be consolidation but believed that if involved they would be the acquirer, not the acquired,” added Ammann.