As the FT notes:
Julius Baer, the Swiss private bank, is considering setting up a dual head office in Asia, most likely in Singapore, as part of a push to make the region its “second home”,reports the FT. The Zurich-based bank, which had assets under management of SFr166bn ($163bn) as of end-June, has increased the proportion of such assets in Asia from zero to 10% since 2006, and is targeting 25% in 3-5 years, CEO Boris Collardi told the FT. The bank now employs more than 300 staff in the city-state, compared with 23 four years ago.
Let’s cut through the verbage: this is recognition that Swiss secrecy is broken and Singapore’s is intact.
The reality is that private banking depends on secrecy — for reasons explored on this blog since the day it began, none of which are attractive. And that’s the sole real reason why money is going to Singapore.
But let’s also be clear: Singapore will be broken too in time, and this is a finite world. The places to which hot money can run will eventually disappear. Not yet, but inevitably. Of that I have no doubt. That’s what the Tax Justice Network set out to do and that’s what it will secure. This move is indication of its success to date. And that success will continue.
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Do you not think that it’s actually the continued growth in Asia that is encouraging private banks to exand into the region, rather than just a shift of European money? There obviously was a fair bit of cash that moved following the introduction of the EUSTD, but there has also been spectacualr growth in the region.
Plus I can’t see Singapore, HK and the UAE ever being “broken” (to borrow your term).
The growth in singapore banking is coming mainly from Chinese from the mainland and Ethnic chinese from the rest of SE asia , the Singapore government is pushing hard to build this business, they are offering citizenship to chinese who have 20 million of assets, For ethnic chinese in Indonesia and Malaysia its a safe haven, their economies are going gangbusters again and all the wealthy chinese want to keep their money some place safe in case the locals turn on the chinese again, its not the tax man or secrecy they fear, in living memory the chinese have been hunted down and killed in many communities in times of crisis. I don’t think this insurance policy is going to be “broken”