Private banks from Switzerland and Liechtenstein are pushing into the German market

Zurich The competition in the German private banking market is getting tougher: A number of Swiss private banks are currently applying for simplified market entry to the German financial regulator Bafin. What is new, among other things, is that the Geneva-based private bank Lombard Odier is aiming for a corresponding license in Germany, as Handelsblatt has learned from financial circles.

When asked, the bank and Bafin did not want to comment on ongoing proceedings. The financial supervisory authority of the Zürcher Kantonalbank had already granted such a so-called simplified exemption in January. The move has spurred other Swiss institutes to push forward their own applications, according to industry circles.

The simplified exemption is a special rule that is unique in Europe and allows Swiss banks to advertise customers without having a branch in Germany. Typically, banks from non-EU countries without a location in Germany are not allowed to address customers directly. Instead, you have to look for cooperation with German banks, which can act as so-called “initiation institutions”.