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Indian deposits in Swiss banks ‘hit 13-years high in 2020’

FUNDS deposited by Indian nationals and firms in Swiss banks hit a 13-year-high of about 2.6 billion Swiss francs (£2.04bn) in 2020, up from 899 million Swiss francs (£704m) a year ago, according to annual data released by the Swiss National Bank (SNB) on Thursday (17).

This also includes deposits by India-based branches and other financial institutions.


The steep rise in 2020 deposits is because of a surge in holdings via securities and similar instruments, though customer deposits fell, SNB data showed.

The last record high was touched in 2006, when deposits by Indian nationals and firms totalled 6.5bn Swiss francs (£5bn); in later years, there was a downward trend of deposits.

From Pakistan too, deposits surged 77.8 per cent in 2020 to 640m Swiss francs (£501m).

Meanwhile, the money deposited by Bangladesh clients in Swiss banks plunged 6.6 per cent to 563m Swiss francs (£441m) in 2020, marking a third consecutive yearly fall.

Of the total sum, 530m Swiss francs (£415m) belong to different banks and the rest to Bangladeshi nationals, the SNB data showed.

The data does not specify who the amount belongs to.

A high level of confidentiality protections in the banking laws makes Switzerland the preferred destination for the wealthy from all over the world to park their funds.

The only exception for information sharing is if a government agency claims that a depositor is involved in a serious criminal act or in some other financial issue.

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Highlights

  • Average UK house price rose 0.3 per cent in October to £272,226, down from 0.5 per cent growth in September.
  • Annual house price growth edged up to 2.4 per cent, with market remaining resilient despite mortgage rates being double pre-pandemic levels.
  • Buyers delaying purchases amid speculation that November budget could introduce new property taxes on homes worth over £500,000.
British house prices grew at a slower pace in October as buyers adopted a wait-and-see approach ahead of the government's budget announcement on 26 November, according to data from mortgage lender Nationwide.

The average house price increased by 0.3 per cent month-on-month in October to £272,226, down from a 0.5 per cent rise in September. Despite the monthly slowdown, annual house price growth accelerated slightly to 2.4 per cent, up from 2.2 per cent in the previous month.

Robert Gardner, Nationwide's chief economist, said the market had demonstrated broad stability in recent months. "Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs".

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