Private Banking

The term Private Banking appoints provides services for mostly wealthy clients, which is more intensive, individual and / or personal than the mass customer business; on the other the division of a bank that operates private banking.

Private banking services are now offered and provided by a variety of banks, irrespective of legal form and ownership; for years, in addition to traditional private bankers and banks savings banks and cooperative banks in this area active.

Services

The services consist of:

  • Asset management: The customer receives from its advisors investment proposals, from which he (alone, together with the consultant or together with third parties, such as tax advisor ) selects.
  • Asset management: The client gives the bank an order according to established principles, such as risk assessment to manage his assets; he does not directly influence individual investment decisions.

The services that are offered in the private banking, have become more extensive. Was it years ago still investment proposals and a detailed portfolio statement, as is now often worked with target definitions, earnings expectations, and performance assessment and extensive investment proposals. Pay attention to the wishes of customers such as certain requirements for credit for bonds, bandwidth for the price-earnings ratio of stocks, exclusion of certain industry groups ( arms production, genetic engineering, etc.) will be discussed as well as their individual risk tolerance.

The asset limits beyond which private banking is offered, vary from bank to bank. They are usually between € 100,000 and € 5,000,000 liquid assets. Through increased services offered by the banks, these limits have fallen.

High Net Worth Individuals

According to a study by Capgemini and the Royal Bank of Canada in 2012 there were 12 million so-called High Net Worth Individuals ( HNWI ), ie those with more than a million dollars in liquid assets ( investable assets). Together they had investable resources of 46.2 trillion dollars. Most HNWIs, namely 3.7 million, according to the study lived in the Asia -Pacific and North America ( also 3.7 million HNWIs ). Lived in Europe 3.4 million.

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