Abstract
This technical note discusses the banking system structure, performance, and medium-term challenges for Switzerland. The note discusses that the Swiss banking sector has been undergoing a substantial consolidation over the last 10 years, but retains a rich collection of institutional types operating in various business segments. Consolidation has been partly driven by competitive pressures following the burst of the housing market bubble and entailed a substantial reduction in the number of institutions and branches. Smaller banks have been also developing owing to various types of cost-sharing arrangements.
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