Published in Global Banking and Financial Policy Review 1998/1999
Switzerland is famous for and has a long tradition in banking. This system began to take shape centuries ago. The foundation of the success of the Swiss banking system is reliant on a democratic and stable political system; a relatively strong currency; the quality of portfolio management; and finally, confidentiality.
Of the four cornerstones to the Swiss banking system, confidentiality or secrecy is the most commonly misunderstood. Many different countries around the world have policies and laws that support one level or another of banking secrecy.
Banking secrecy was not invented recently, or even this century, but has existed as long as banks have existed. The Swiss Supreme Court recognised its existence as a civil concept before there were express statutory provisions to that effect. Banking secrecy can, in part, also be explained by the small and tightly knit society of Switzerland. It is important to note the
