Switzerland’s third-largest bank has decided to leave the main lobby group of the industry, a move that comes as a major upset to the traditionally conservative and influential business association.

Raiffeisen Switzerland has given notice of its intention to leave the Swiss Bankers Association (SBA) by the end of March 2021. The group is Swiss banking’s main lobby organization.

Raiffeisen, the biggest mortgage lender in Switzerland, said that it will pursue an independent strategy on regulatory and legal affairs, according to a statement released on Tuesday (in German).

Committed to a Strong Financial Market

The bank argued that the interests of the various actors on the Swiss financial market and the industry had undergone significant change over past years and that it, therefore, had undertaken a reevaluation of the group’s political lobbying strategy.

Raiffeisen reaffirmed its intentions to advocate a strong Swiss financial market and remains committed to a consensual approach between all the actors concerned.

Alternative Interest Group

Raiffeisen Switzerland has its chairman, Guy Lachappelle, delegated to the board of directors of the SBA and is an important voice in Swiss banking thanks to its strength as a major player in retail banking. It is also an advocate of the retail business as a member of an interest group of domestic banking («Die Inlandbanken»), which also includes the cantonal banks, regional banks, and Migros Bank. The two bank associations in the past have had significantly different positions on various aspects covering the financial market.

The Swiss Bankers Association has repeatedly faced accusations of representing chiefly the interests of UBS and Credit Suisse as well as those of private banks. UBS and Credit Suisse are the biggest contributors to the SBA, while Zurich-based Vontobel delegated Herbert Scheidt as chairman of the association.

Centrifugal Forces at Work

The SBA, which is considered one of Switzerland’s main lobby groups, said it regretted the decision by Raiffeisen and emphasized its readiness to welcome back the bank and its staff in the future (release in German). It added that it represented seven of the eight banking groups of Switzerland and therefore remained the leading voice of banking in the country.

The coronacrisis seems to have deepened rifts among the main Swiss financial players. At the end of October, the Swiss unit of Axa, one of the country’s biggest insurers, left the insurance association.