Economics in the 21st century: Janwillem Acket is the chief economist at Julius Baer, a Swiss private banking group with a long and colourful history. He shares his views on the Swiss franc, the Euro and the broader consequences of the recent global financial crisis.
| Auteur | Heddema, Renske |
| Fonction | Finance - Company overview |
A painting of the Matterhorn hangs on the wall of Janwillem Acket's office, but this interpretation of Switzerland's national icon has been painted with holes like Emmentaler cheese. The Swiss flag in front of the mountain has two white plasters, representing the white cross against a red background. A frame of rough, unpainted shingle underlines the irony of the art piece: it almost appears to say, "Swiss banking has been injured. Swiss banking is under construction." Now, as before in its long history, it is in the process of change.
Recent bilateral taxation agreements with both the UK and Germany will oblige Swiss banks--Julius Baer included--to serve as an "external revenue service", forcing them to levy a tax on the assets of German and UK citizens (who are not resident in Switzerland) on behalf of their respective governments; assets that have, until now, remained undeclared.
If these clients choose to declare their assets to the authorities of their country of domicile themselves, they will get the flat tax back from their Swiss bank. If they don't, then they will have paid their dues. However, the ultimate selling point for the continuation of banking confidentiality is that the client's identity will not be revealed to the taxation authorities of their country: this flat tax will be transferred anonymously.
Once implemented, the agreements will accelerate the head start Swiss institutions already appear to have made, following the attacks of recent years against banking secrecy. In securing the agreements, Swiss negotiators have preserved the privacy of foreign banking clients and secured a future for this key sector: a future for which Julius Baer is well prepared.
A notable characteristic of Julius Baer's strategy is its expansion into the Asian market. Since 2005, the bank has deliberately chosen to serve its affluent clients on their home territory, opening branches in locations like Singapore, Hong Kong, and lately setting foot in Shanghai. Julius Baer sees Asia as its second home market--one that is increasingly significant. The bank's proximity to its clients is essential for a "pure-play" private bank. With Europe and Asia as the main pillars of their business, Julius Baer has also built two smaller ones in Latin America and Eastern Europe.
Renske Heddema, Swiss News: Closer to home, let's look at the ongoing struggle in the Eurozone: with an increasing number of countries supported by the 750 billion [euro] bailout fund...
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