A Time-Series Regression Analysis on the Effect of Policy Change for Privacy in Banking in the Country of Switzerland
MetadataShow full item record
Lack of information transparency has been a contested topic throughout the world; especially in the banking sector when dealing with the mistreatment and taking advantage of banking laws. The Swiss have made banking a part of their reputation with the level of lengths they will go to protection client information. To try and understand the importance of banking privacy in Switzerland, this paper explores the history behind bank secrecy in Switzerland and looking toward the future of Swiss banking privacy through an econometric analysis of a policy change fighting for transparency with Swiss bank accounts. Switzerland since the late 1990s has been fighting the United States over the right to account information when handling tax evasion. The enactment of the US policy Financial Action Task Force (FATCA) to Switzerland in 2013 has had negative effects on the Swiss GOP through the closure of many of the country's banks. While there has been limited in-depth research done about this policy in Switzerland, I was able to prove and back up this claim about the policy's effect. Using two models, one to test GOP and the other the number of banks, the results showed a polarizing relationship between the policy and two types of banks: Big Banks and Private banks.