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. Notably, it is becoming harder for small- and
mid-sized companies that do not have an investment grade rating to
refinance and renegotiate existing debt structures. As a result,
many
