How Swiss Banks Work: Types, Rules and Deposit Protection (2026)
Swiss banking looks complicated from the outside. Underneath, the work is divided clearly. The Swiss National Bank (SNB) runs monetary policy, the financial market supervisor FINMA authorises and supervises banks, and the banks fall into a handful of categories, from the one remaining big bank to cantonal, Raiffeisen, private and foreign-controlled banks.
This guide explains each part, adds the main 2025 figures, and shows how deposit protection works, as of 19 October 2026.
· 7 min read
The short version
- The SNB conducts monetary and currency policy, ensures price stability and contributes to the stability of the financial system (Art. 5 National Bank Act).
- FINMA authorises banks. Only institutions with a FINMA authorisation may use the words "bank" or "banker" in their name (Art. 1 and 3 Banking Act).
- Since UBS took over Credit Suisse in 2023, the "big banks" category consists of one group (SBA).
- Banks in Switzerland had a combined balance sheet of CHF 3,191.3 bn at the end of 2025. Mortgage loans were the largest asset item at 39.6%.
- Deposits in your name are privileged up to CHF 100,000 per creditor in a bank bankruptcy (Art. 37a), and the payout is due within seven working days after FINMA's notice (Art. 37h).
- You can check any bank on FINMA's list of authorised banks.
In this guide
1. Who does what: SNB, FINMA and the banks
| Body | Role | Source |
|---|---|---|
| Swiss National Bank (SNB) | Conducts monetary and currency policy in the overall interest of the country and ensures price stability. Its tasks include supplying the Swiss franc money market with liquidity, cash supply, secure cashless payment systems, managing the currency reserves and contributing to the stability of the financial system. | Art. 5 NBG |
| FINMA | Authorises a bank before it starts business. The conditions include a defined business scope, the minimum capital set by the Federal Council, managers with a good reputation who guarantee sound business, qualified shareholders (10% or more) whose influence does not harm sound business, and managers who live where they can run the bank. | Art. 3 BankG |
| Banks | Banks, private bankers (sole proprietorships and partnerships) and savings banks are subject to the Banking Act. Only institutions subject to it may take deposits from the public commercially, with exceptions the Federal Council can set. The words "bank" and "banker" are reserved for institutions with a FINMA authorisation. | Art. 1 BankG |
2. The types of Swiss banks
The SBA reports banks by the SNB's categories. The SNB assigns individual banks to categories at its own discretion, so the figures for a category can shift when banks merge or are reclassified (SBA Banking Barometer 2026).
| Category | What the sources say |
|---|---|
| Big banks | Since UBS took over Credit Suisse in 2023, the category comprises one group. Big banks earned 43.3% of the sector's net income in 2025 (SBA). |
| Cantonal banks | They hold the largest share of the domestic mortgage market: 40.4% at the end of 2025 (SBA). |
| Raiffeisen banks | They have gained mortgage market share in recent years (SBA). |
| Regional and savings banks | Their mortgage market share stayed unchanged in 2025, after losing ground in earlier years (SBA). |
| Stock exchange banks | They earned 14.8% of the sector's net income in 2025, well above their multi-year average (SBA). |
| Foreign-controlled banks | Almost 100 operate in Switzerland, employing more than 16,000 people. A subsidiary is a Swiss legal entity with a foreign parent. A branch is not a separate legal entity. It must still be authorised and supervised by FINMA (SBA). |
| Private bankers | Under Art. 1 BankG they are banks run as sole proprietorships or partnerships. Their combined balance sheet grew 15.8% in 2025 (SBA). |
| Domestically focused banks | The SNB defines them as banks with a share of domestic loans in total assets above 50%, or that play a prominent role in the domestic deposit market (SNB). |
3. What Swiss banks do with money: the 2025 numbers
| Figure | 2025 | Change or detail |
|---|---|---|
| Combined balance sheet of banks in Switzerland | CHF 3,191.3 bn | Down 0.9% |
| Mortgage loans, share of total assets | 39.6% | The largest asset item |
| Domestic mortgage loans | CHF 1,244.8 bn | Up 3.0% |
| Customer deposits | More than half of liabilities | Sight deposits up 14.5%, time deposits down 23.5% |
| Combined net income | CHF 73.8 bn | Up 5.8% |
| Assets under management | CHF 9,729.1 bn | Up 4.8%. Securities are about 88%, and the Swiss franc is the currency of more than half of custody holdings |
Source for the table: SBA Banking Barometer 2026, August 2026. Two jobs show up in the figures. One is lending, above all mortgages, funded largely by customer deposits. The other is wealth management: by our arithmetic, assets under management are about three times the combined balance sheet. In 2025 the assets of foreign-domiciled customers grew by CHF 241.7 bn and those of customers living in Switzerland by CHF 203.4 bn.
4. How your deposit is protected
The rules sit in Articles 37a to 37h of the Banking Act. They describe what happens to deposits when a bank fails.
| Rule | What it says | Article |
|---|---|---|
| Privileged deposits | Deposits in the depositor's name, including cash bonds deposited in their name, rank in the second creditor class up to CHF 100,000 per creditor. | 37a(1) |
| Shared claims | If a claim belongs to several people, the privilege can be claimed only once. | 37a(4) |
| Unauthorised firms | Deposits at firms that act as banks without a FINMA authorisation are not privileged. | 37a(3) |
| Pension foundations | Claims of bank foundations as pension institutions count as the deposits of the individual members, each privileged up to the same maximum, separately from their other deposits. | 37a(5) |
| Cover | Banks must permanently hold domestically covered claims or other assets in Switzerland worth 125% of their privileged deposits. | 37a(6) |
| Payout | Banks must join a self-regulation approved by FINMA. It must ensure that the deposit protection scheme pays the secured deposits to the person FINMA appoints within seven working days after FINMA's notice of a bankruptcy liquidation or protective measure. | 37h(2) and (3) |
| Funding | Banks commit to contributions totalling 1.6% of secured deposits, at least CHF 6 bn. Half of each bank's commitment must be backed by high-quality securities or Swiss francs held with a safe third-party custodian, or by cash loans to the scheme. | 37h(3) |
| Scope | Banks secure the privileged deposits held at their Swiss offices. | 37h(1) |
These are the legal rules. They are not a guarantee about any single bank, and this guide does not rate banks. It covers deposits only. Securities held in custody follow other rules that we have not reviewed here.
5. After Credit Suisse
UBS took over Credit Suisse in 2023, which is why the big bank category now covers one group. The SBA says extraordinary income in 2025 returned to a level in line with the long-term average for the first time since the takeover, which suggests that the one-time effects are now largely exhausted. The same report links the fall in bank jobs in 2025 to the big banks (SBA Banking Barometer 2026). We cover that in our guide to finance jobs in Switzerland. This article does not describe what happened to Credit Suisse customers in 2023.
6. Using this as a customer
- Check the bank is authorised. FINMA lets you search by name and publishes lists of authorised banks, updated on 19 October 2026 (FINMA). Deposits at a firm without a FINMA authorisation are not privileged (Art. 37a(3)).
- Expect identification. A financial intermediary must identify you with a document that has evidentiary value when it starts a business relationship (Art. 3 GwG).
- Opening an account. Documents, costs and providers are in our Swiss bank account guide.
- Secrecy and tax reporting. See Is Swiss banking secrecy dead?
FAQ
Who supervises Swiss banks?
FINMA authorises banks before they start business (Art. 3 Banking Act) and supervises them. The Swiss National Bank contributes to the stability of the financial system (Art. 5 National Bank Act), but it is not the supervisor of individual banks.
How much of my money is protected if a Swiss bank fails?
Deposits in your name rank in the second creditor class up to CHF 100,000 per creditor (Art. 37a Banking Act). The deposit protection scheme must pay secured deposits within seven working days after FINMA's notice (Art. 37h). That is the legal rule, not a guarantee about any particular bank.
How many big banks does Switzerland have?
One group. Since UBS took over Credit Suisse in 2023, the big banks category includes institutions of only one group, according to the Swiss Bankers Association.
What is a private banker in Swiss law?
Under Article 1 of the Banking Act, private bankers are banks organised as sole proprietorships or partnerships. The Swiss Bankers Association reports them as a separate category.
How can I check that a bank is authorised?
Search the name on the FINMA website or download its lists of authorised banks. Only institutions with a FINMA authorisation may use the words bank or banker in their name.
What does the Swiss National Bank do?
It conducts monetary and currency policy in the overall interest of the country and ensures price stability. It also supplies the Swiss franc money market with liquidity, ensures cash supply, supports cashless payment systems, manages the currency reserves and contributes to financial stability (Art. 5 National Bank Act).
Related guides