From Financing Production to Producing Finance

The Transformation of Banking Elites and Changes in Banking Strategy of large Swiss Banks from 1945 to 2020

Abstract

This paper studies the evolution of banking elites and banking strategy of the largest Swiss banks since 1945. Between 1985 and 2000, an elite transformation occurred within the large Swiss banks. A Swiss-oriented business and political elite was replaced by a US-socialized financial elite. The displacement Swiss-oriented business and political elite closely preceded the decline of retail banking and the shift of loan volumes from production to finance.