SPECIAL AGENT GIBBS Private Banking 08/16/13
[..SpecialAgentGibbs] Private banking is banking, investment and other financial services provided by banks to private individuals who invest sizable assets. The term "private" refers to customer service rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It does not refer to a private bank, which is a non-incorporated banking institution.
[..SpecialAgentGibbs] Private banking forms an important, more exclusive, subset of wealth management. At least until recently, it largely consisted of banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager.
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On the whole, many clients trust their private banking relationship manager to ‘get on with it’, and take a largely passive approach to financial decision making.
[..SpecialAgentGibbs] Private banking is the way banking originated. The first banks in Venice were focused on managing personal finance for wealthy families. Private banks became known as ‘Private’ to stand out from the retail banking & savings banks aimed at the new middle class.
Traditionally, Private Banks were linked to families for several generations. They often advised and performed all financial & banking services for families.
Historically, private banking has developed in Europe (see the List of private banks). Some banks in Europe are known for managing assets of some royal families. The assets of the Princely Family of Liechtenstein is managed by LGT Bank (founded in 1920).
The assets of the Dutch royal family is managed by MeesPierson (founded in 1720). The assets of the British Royal Family is managed by Coutts (founded in 1692). 
[..SpecialAgentGibbs] Historically, private banking has been viewed as a very exclusive niche that only caters to High-net-worth individuals (HNWIs) with liquidity over $2 million, though it is now possible to open private banking accounts with as little as $250,000 for private investors.
An institution's private banking division provides 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.
For private banking services clients pay either based on the number of transactions, the annual portfolio performance or a "flat-fee", usually calculated as a yearly percentage of the total investment amount.
[..SpecialAgentGibbs] "Private" also alludes to bank secrecy and minimizing taxes through careful allocation of assets, or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been criticized for such cooperation with individuals practicing tax evasion.
Although tax fraud is a criminal offense in Switzerland, tax evasion is only a civil offence, not requiring banks to notify taxing authorities.
[..SpecialAgentGibbs] In Switzerland, there are many banks providing private banking service. From Congress of Vienna in 1815 Switzerland has remained neutral including the time of two World Wars.
After World War I, the former nobles of Austro-Hungarian Empire moved their assets to Switzerland for fear of confiscation by new governments. During World War II, many wealthy people, including Jewish families and institutions, moved their assets into Switzerland to protect them from Nazi Germany.
However, this transfer of wealth into Switzerland had mixed and controversial results, as beneficiaries had difficulties retrieving their assets after the war. After World War II, in east Europe, assets were again moved into Switzerland for fear of confiscation by communistic governments.
Today, Switzerland remains the largest offshore center, with about 27 percent ($2.0 trillion) of global offshore wealth in 2009, according to Boston Consulting Group. (Offshore wealth is defined as assets booked in a country where the investor has no legal residence or tax domicile)
[..SpecialAgentGibbs] The United States has one of the largest scale private banking systems in part due to the 3.1 million HNWIs accounting for 28.6% of the global HNWIs population in 2010, according to the co-research of Capgemini and Merrill Lynch. Some American banks that specialize in private banking date back to 19th century, such as U.S. Trust (founded in 1812) and Northern Trust (founded in 1889).
[..SpecialAgentGibbs] Recent developments in Private Banking The internationalization of the economy, technological developments such as the Internet and mobile ensure that banks have to innovate their value proposition and look for new markets.
For example, the growth of High Net Worth Individuals (HNWI) is low in Traditional Private Banking markets like Europe compared to Asia where the number of millionaires has grown to 3.6 million.
Technological developments have made sure that online banks can offer banking services without an extensive network of offices without extensive. The regulation of reward and regaining confidence after the banking crisis require a new level of transparency and different methods of charging for services.
[..SpecialAgentGibbs] According to Euromoney's annual Private banking and wealth management ranking 2013, which consider (amongst other factors) assets under management, net income and net new assets, global private banking assets under management grew just 10.8%YoY (compared with 16.7% ten years ago). "Best private banking services overall 2013". This table displays results of one category of the Private banking ranking.
[..SpecialAgentGibbs] 1 UBS
[..SpecialAgentGibbs] 2 Credit Suisse
[..SpecialAgentGibbs] 3 JPMorgan
[..SpecialAgentGibbs] 4 HSBC
[..SpecialAgentGibbs] 5 Citi
[..SpecialAgentGibbs] 6 Deutsche Bank
[..SpecialAgentGibbs] 7. Merrill Lynch Wealth Management
[..SpecialAgentGibbs] 8 Santander
[..SpecialAgentGibbs] 9 BNP Paribas
[..SpecialAgentGibbs] 10 Goldman Sachs
[..SpecialAgentGibbs] UBS took the top spot in Euromoney's 2013 survey for "Best private banking services overall 2013."