Simplifying the bank establishment approval process in Switzerland

Following an agreement between the People’s Bank of China and the Swiss National Bank to establish clearing arrangements in Switzerland for trading renminbi, China Construction Bank announced earlier this year its intent to open a branch office in Switzerland within the year.

Other Chinese banks such as Bank of China, Agricultural Bank of China and Industrial and Commercial Bank of China may follow suit and open their own branch offices in Switzerland. This column addresses the most important Swiss regulatory questions to be considered when establishing a bank in Switzerland.

First and foremost, the Swiss entity requires a banking licence from the Swiss Financial Market Supervisory Authority (FINMA) before it can start any banking activities in Switzerland. Should the Swiss entity also trade in securities, it needs a securities dealer licence in addition to the banking licence.

Adrian Dörig and Stefan Grieder are both partners on VISCHER’s banking & financing team; Fiona Gao Yue is an associate on VISCHER’s China desk