Private banking

Private banking

Private banking is a term for banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It should not be confused with a private bank, which is simply a non-incorporated banking institution.

Historically private banking has been viewed as very exclusive, only catering for high net worth individuals with liquidity over $2 million, although it is now possible to open some private bank accounts with as little as $250,000 for private investors. An institution's private banking division will provide various services such as wealth management, savings, inheritance and tax planning for their clients. A high-level form of private banking (for the especially affluent) is often referred to as wealth management.

The word "private" also alludes to bank secrecy and minimizing taxes via careful allocation of assets. An offshore bank account may be used for this purpose.

Private bank rankings

According to Euromoney's annual Private bank and wealth management rankings, which consider assets under management, profitability, ratio of clients to relationship managers and services offered, global private banking assets under management are up over 128% year on year.Fact|date=September 2008

Best private bank for ultra high net worth ($30m+) 2008. This table displays results of one category of the Private banking awards. [Euromoney magazine. January 2008. Annual rankings.]


According to Scorpio Partnership's Annual Private Banking Benchmark for 2006, the largest private banking division is at UBS AG, followed by Citigroup and Merrill Lynch, each of these institutions gathering more than $1 trillion in assets under management for private clients. [Scorpio Partnership Benchmark 2006, Press Release and summary [] ]

Private banking institutions showed an increase in profits and assets under management in 2006 following a period of slow growth by 3.8% in 2004. [City Business Series, 2008, International Financial Services London [] ]

Switzerland is a major location for private banking. Swiss banks hold an estimated 35% of the world's private and institutional offshore funds, or 4.6 trillion Swiss francs.

ee also

*Bank secrecy
*Offshore bank
*Swiss bank
*List of economics topics
*List of finance topics


Wikimedia Foundation. 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • private banking — UK US noun [U] ► BANKING financial services and advice that are offered to a bank s richest customers, for example on how to invest their money: »The group s private banking arm reported a 3% rise in operating income. »The bank is keen to develop …   Financial and business terms

  • Private banking — (РВ) комплекс финансовых и нефинансовых услуг, который предлагается банками VIP клиентам и включает в себя индивидуальную систему обслуживания. Выделен в банках в отдельное направление бизнеса. Российский рынок private banking сформировался не… …   Банковская энциклопедия

  • Private Banking — Das Private Banking bezeichnet eine Betreuung für meist vermögende Kunden, die intensiver und persönlicher ist als im Massenkundengeschäft. Es gliedert sich auf in: Vermögensberatung: der Kunde erhält von seinem Berater Anlagevorschläge, auf… …   Deutsch Wikipedia

  • Private Banking — Personalized financial and banking services that are traditionally offered to a bank s rich, high net worth individuals (HNWIs). For wealth management purposes, HNWIs have accrued far more wealth than the average person, and therefore have the… …   Investment dictionary

  • private banking — /ˌpraɪvət bæŋkɪŋ/ noun a special banking services offered to very rich people …   Dictionary of banking and finance

  • Private Banking — Banque privée Une banque privée est une banque qui rend des services financiers très personnalisés et sophistiqués, souvent résumés sous l expression « gestion de fortune », à des particuliers détenant un patrimoine net important . Les… …   Wikipédia en Français

  • Private Banking — Pri|vate Ban|king 〈[praıvət bæ̣ŋkıŋ] n.; od. s; unz.〉 privates Bankkundengeschäft [engl.] * * * Pri|vate Ban|king [ pra̮ivɪt bɛŋkɪŋ], das; [s] (Bankw.): Privatkundengeschäft …   Universal-Lexikon

  • Private Banking — Pri|vate Ban|king [ prai̮vɪt bɛŋkɪŋ], das; [s] <englisch> (Bankwesen Privatkundengeschäft) …   Die deutsche Rechtschreibung

  • Banking in Switzerland — is characterized by stability, privacy and protection of clients assets and information. The country s tradition of bank secrecy, which dates to the Middle Ages, was first codified in a 1934 law. [cite web… …   Wikipedia

  • Private bank — Private banks are banks that are not incorporated. A non incorporated bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the entirety of the bank s assets as… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”