Credit Suisse has identified the Grand Duchy of Luxembourg as a hub in the European Union. It is one of a host of banking institutes to seek alternative financial markets to do business from as Switzerland's political ties with the EU remain unclear, Bloomberg News reported.
Romeo Lacher, the head of private banking for Europe, Middle East and Africa at Switzerland's second-largest bank told Bloomberg that the bank sought to double the amount of money booked in Luxembourg over the coming three years.
Only yesterday, the Swiss Bankers Association warned that if the government didn't succeed in reaching an agreement with the EU about a free access to the union's financial market, a relocation of business would follow suit. The stalling of negotiations followed the decision by voters in 2014 to limit the number of immigrants to Switzerland, something which is incompatible with the principle of free movement of people as defined by the EU.
One Amongst Many
Lombard Odier and Pictet, private banks from the French-speaking part of Switzerland, are two other financial companies increasing their base in Luxembourg, Bloomberg reported. They are among at least a dozen institutes to have branches in the Grand Duchy.
Luxembourg is competing with London and Frankfurt to develop as a major European-wide banking hub. As the UK has a question mark hanging over its EU membership with a referendum promised by the government of David Cameron, Luxembourg may be well placed to attract more business from outside the EU.
