Business Worthy Blog

Archive for the ‘Private Banking’ Category

This reality of private banking is happening in all parts of the globe (something similar is happening in Citigroup’s presence in Mexico before the Spanish banking concern in that country) and recent reports of small Spanish banks that fall into corruption and theft investors to be small and poorly regulated in a deeper concern in the private banking client.

Today when the profitability of investments in all parts of mediocre or negative is the customer who keeps savings and want to keep and grow the same institutions that are looking to cause problems. Citibank in Mexico, in Canada knows it and moves on to give that assurance to investors.

Private banking is an investment for a bank more profitable. The commissions that class institutions, size and prestige charged to private banking clients ranges from 1.50-2.50% of assets. There are more hidden and indirect commissions on products that are created for clients (eg investment funds with a profit of 1-2% surcharge. The risk is minimal because whatever I do the market fees collected. The risk is that the customer look elsewhere in search of higher yields but the moments of crisis like the present they’re looking for the security of a big giant size that protects its interests from a performance background.

My opinion in this regard is that customers and investors should be concerned at Indigo and ascertain the costs and commissions charged giants and look carefully to reduce them. The big banks and financial institutions seek to end of the high yields and benefits. His desire to keep customers happy to extend the relationship but the role of invesor also be active in the field of analysis of the commissions. That said I see the importance of always being present first class institutions, in size. The divesification between institutions is always important especially in countries where the size is not large institutions worldwide.