Britain, Switzerland sign new banking system deal that strengthens financial ties

Dec. 21 (UPI) -- Britain and Switzerland signed a banking system deal Thursday to strengthen financial ties between two large European banking centers.

British Chancellor of the Exchequer Jeremy Hunt and Swiss Head of Federal Department of Finance Karin Keller-Sutter met in Bern, Switzerland to sign off on the deal that the Swiss government said would bring improved regulatory and supervisory cooperation which will strengthen stability of the banking systems.

"This agreement helps to retain and boost the international competitiveness of the Swiss financial center in the long term," Keller-Sutter said.

A Swiss Federal Council statement said that for the first time, Britain and Switzerland have "recognized the equivalence of their respective legal and supervisory frameworks in selected areas of the financial sector on the basis of an in-depth review. This enables or facilitates access to the other party's market."

The British Treasury said the deal "enables the frictionless, cross-border provision of financial services between the U.K. and Switzerland across areas such as asset management, banking, and investment services."

"The Bern Financial Services Agreement is a global first and builds on the U.K. and Switzerland's strengths as two of the world's largest financial centers," Hunt said. "It cements open access for financial services between our two nations for decades to come, helping us grow the economy and serving as a blueprint for future agreements with other key trading partners."

The British Treasury added the deal was "only possible due to new freedoms granted to the U.K. following its exit from the EU."

According to the British Treasury, trade in financial and insurance services with Switzerland grew 53% between 2016 and 2022, hitting a high of $4.2 billion in 2022.

In addition to the banking deal, Britain is also negotiating an enhanced Free Trade Agreement with Switzerland that the British government said will further boost financial ties across the full range of trade between the nations.