These are the latest figures from the Swiss National Bank (SNB).
However, the influential Swiss Bankers Association ( SBA )) has said that one should be extremely careful before drawing conclusions about value of securities held by foreign entities.
“… the changes are due to not only client behaviour (i.e. deposits and withdrawal of funds) but also to changes in the price of the securities (mainly share and bonds) held in the custody accounts and also to developments in exchange rates,” SBA’s Head of International Communications James Nason told PTI.
Nason noted that foreign clients probably hold more securities in euros and dollars than their Swiss counterparts.
The value of their portfolio has taken a greater bashing because of the decline in the value of the dollar and the euro vis-a-vis the Swiss franc, he added.
“A drop in value can be seen not only for foreign private clients but also for foreign commercial and foreign institutional clients,” Nason pointed out.
Overall, customer holdings of securities in Swiss banks fell by 1.3 per cent to about 4.45 trillion Swiss francs in 2010.
Even though there are no definite figures on the amount of black money stashed away offshore by Indians, rough estimates had pegged the amount at around USD 1.5 trillion.
The Swiss Parliament has approved amendments to tax treaties with India and many other countries, following which the governments can now more easily secure banking information of its citizens who have deposited illegal funds in secret Swiss accounts.
Indian government is facing intense pressure from the Opposition, the Supreme Court and civil society to bring back black money stashed away in tax havens. The government has already unveiled various initiatives including studies to curb the menace of black money.
Patriotic Indians
They may stash away black money in Swiss banks but they continue to live in India.
Now contrast this with the Chinese scenario.
The Central Bank of China just released following figures :
Between 1990 and 2008, some 16,000 / 18,000 corrupt Chinese government officers transferred $ 120 billion of bribe money to their secret accounts in America, Australia, Canada and Holland.
Apparently, “ hawala “ does not seem to be an original Indian invention !
Then they migrated to those countries and set-up private companies there.
No Indian government servant will ever stoop so low. After all , he is patriotic !
He will always send his son for higher “ studies “ to that country and settle down so that the black money can be brought back legitimately !
Why earn 2 % interest abroad when you can earn 20 % by investing in India ?
With regards
Hemen Parekh
Jobs for All = Peace on Earth