A report published by the Swiss National Bank last week reflects widespread distrust of banks in the current climate. The Monthly Bulletin of Banking Statistics shows that fiduciary deposits placed through banks in Switzerland have fallen by 3 per cent in the first nine months to SFr689.3 billion ($577.25 billion).

The decline includes a 5 per cent drop in September. About 48 per cent of the latest total was denominated in US dollars, 33 per cent in euros and 8 per cent in Swiss francs.

In terms of the underlying currencies, US dollar deposits fell 2 per cent (to $300 billion), but euro deposits rose 5 per cent (to €144 billion) and Swiss franc deposits rose 10 per cent (to SFr53 billion).

“Fears that banks may default have caused clients to withdraw their money from fiduciaries and place them in government securities,” Christian Wells, head of the Carne group’s Geneva office, told WealthBriefing.

“I am hopeful that, as the banks stabilise, we will see clients returning to fiduciaries, as they have been a very popular product in the wealth management field in recent years,” Mr  Wells added.