Switzerland—cross border banking and finance guide
Produced in partnership with Schellenberg Wittmer

The following Banking & Finance practice note produced in partnership with Schellenberg Wittmer provides comprehensive and up to date legal information covering:

  • Switzerland—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Switzerland—cross border banking and finance guide

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments

According to statistical data which the Swiss National Bank published for November 2019, banks licensed in Switzerland provided credit facilities amounting to some CHF 1,214,000 million (amounts utilised) and CHF 1,507,000 million (amounts committed), respectively, to borrowers incorporated or resident in Switzerland. Some CHF 1,035,000 million were utilised mortgage loans. Commercial loan amounts have increased slowly but constantly over the last few years. This trend is likely to continue, in particular, for loans granted to individuals and small- and mid-cap corporate borrowers.

In particular, the Swiss market for syndicated lending transactions significantly increased during the last 20 years. Commitment amounts in the high three-digit millions were not uncommon during the peak years before 2008. The financial crisis, the strict capital base requirements of Basel III and the strong Swiss Franc somewhat slowed down the appetite of Swiss banks for granting large loans. Recently, in particular, Swiss-based syndicates are facing increasing competition from foreign arrangers of syndicated loans and managers of high-yield bond issues, particularly for large Swiss corporate borrowers and issuers as well as from private funds offering unitranche financings mainly to mid-cap corporate borrowers. 2019 was a particularly strong year for the Swiss syndicated loan

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