Deposits of Indian customers in Swiss banks have declined by around 18% over the past decade, according to the latest figures released by the Swiss National Bank (SNB). The data highlighted a drop from approximately 425 million Swiss francs in 2015 to 346 million Swiss francs in 2024.
The SNB data also showed that Indian deposits had seen a sharp rise during the COVID-19 period, touching a 10-year high of around 602 million Swiss francs. However, the deposits started declining after the pandemic peak.
In 2023, deposits stood at 309 million Swiss francs, but in 2024, it grows by 37 million Swiss francs to reach 346 million Swiss francs. Despite this annual rise, the overall trend over the last decade remains downward.
However, the decline in deposits is not unique to India. Several other major economies also witnessed a reduction in funds deposit in Swiss banks by their nationals. For instance, deposits by UK nationals fell from 44 billion Swiss francs in 2015 to 31 billion Swiss francs in 2024. Chinese deposits also saw a decline, reducing from 5.01 billion Swiss francs to 4.3 billion Swiss francs over the same period.
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The neighbouring countries of India Pakistan and Bangladesh also saw decline, deposits held by Pakistani nationals in Swiss banks have witnessed a steep decline over the last ten years.
According to the data, deposits by Pakistanis stood at 947 million Swiss francs in 2015 but have dropped significantly to 241 million Swiss francs by 2024, a fall of nearly 75%. A similar trend was observed in the case of Bangladeshi nationals. Their deposits in Swiss banks declined from 48 million Swiss francs in 2015 to just 12.6 million Swiss francs in 2024, marking a drop of over 73%.
The decline reflects a reducing trend of foreign deposits in Swiss banks it can be due to various reasons like tightening regulations, increased scrutiny, and changes in international financial transparency norms. Saudi Arabian deposits nearly halved during the 10-year period, from 8.3 billion Swiss francs in 2015 to 4.8 billion Swiss francs in 2024.
The most significant drop was seen in deposits by American nationals. Their deposits in Swiss banks dropped steeply from 64.2 billion Swiss francs in 2015 to 24.4 billion Swiss francs in 2024, a decline of about 62%.
The data highlighted a broader trend of declining foreign deposits in Swiss banks, possibly reflecting greater transparency, international regulations, and shifts in global financial preferences. For India, the trend clearly shows that over the last decade deposits by Indian nationals in Swiss banks have declined. Though, a temporary hike in deposits was seen during the pandemic in 2021.
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