Swiss banks deposits plummet in 2008

GENEVA: The amount of money deposited in Swiss banks shrank by more than a quarter last year as the global financial crisis hit asset values and customers withdrew large sums amid concerns about probes into the offshore banking industry.

Figures released by the Swiss National Bank showed total deposits fell 27 per cent, or 1.41 trillion Swiss francs, to 3.82 trillion francs, their lowest since August 2005.

Deposits from foreign customers shrank by 882 billion francs, while Swiss customers had 531 billion francs deposited in their country's banks, according to the SNB's monthly statistical bulletin.

Foreign private customers saw the highest proportional drop in assets, 36 per cent or 371 billion francs, leaving only 671 billion francs worth of deposits in Swiss vaults.

That is the lowest deposit amount from foreign private customers since the end of 1998.

Deposits by foreign institutional customers dropped 23 per cent to 1,386 billion francs.

Domestic private customers had 417 billion francs deposited by the end of the year, 28 per cent less than in 2007.