Our history

The private bankers represent the oldest form of Swiss banking establishment. Originally, wholesalers, brokers, or forwarding agents, they specialized in credit business and bills of exchange related to goods trading. Throughout history names of illustrious people and families appear, precursors of today's private bankers.

The precursors of today’s private bankers

One of these forebearers was Cosimo de' Medici who, during the Council of Basle in the 15th century, set up one of the very first banking houses in that city.

The Reformation in the 16th century and the emergence of Calvinism, caused persecuted protestants from all over Europe - but mainly from France and Italy - to flock to Geneva, where they found refuge. Among them were a number of bankers who soon deployed their talents. In the 18th century, the Genevese private banker, Jacques Necker rose to fame when he was appointed Director General of State Finances by the king of France, Louis XVI.
 
Today, there are still many private bankers who can retrace their origins to the 18th century. They originally operated as universal banks fulfilling their customers' borrowing needs. Until the beginning of the industrial revolution, the private bankers were overall the most important and most influential people in the banking system.
 
 

The industrial revolution

  
However, with the booming development of industry in the second half of the 19th century, it was no longer possible for these banks to satisfy the increasing demand for loans while retaining their legal form characterized by the partners' unlimited liability. It was from this situation that the first limited liability credit banks emerged in Switzerland, often on the initiative of private bankers. As these banks developed, the number of private bankers decreased. In contrast to their numerical decline, the size of the individual private banking houses has grown significantly and today many of them are present in the major financial centres across the world.
 
 

The private bankers as specialists in asset management

 
For the private bankers, the first part of the 20th century was a very prosperous time through loan issues by public bodies and securities lending. After World War I the private bankers were extremely active in the placing of such loans, in collaboration with various American banks. But this period was also marked by economic depression and political changes, accompanied by banking crises which decimated the number of banking houses. When the Federal Banking Law was passed in 1934, the banks’ area of activity, hitherto relatively broad, was vastly reduced in an aim to provide creditors with more protection, through demands for solid capital bases. Because of their specific structure, the private bankers were able to obtain banking and legal privileges.
 
During and after World War II, they consolidated their specialization in stock exchange business and securities trading, which gave birth to the worldwide reputation they enjoy today as specialists in asset management.
 
The 1990s as well as the 2000s represented a period of rapid growth for the Swiss private bankers' business and some of them notably invested in developing their operations abroad. There was also a considerable increase in the total assets under management by the members of the Swiss Private Bankers Association.