Private banking reformed by the gold rush | Bloomberg

Bloomberg

The gold rush of $ 200 billion has caused a great impact and is that it has managed to reform private banking. In fact, private bankers of any continent are finding new ways to serve the growing ranks of the world’s wealthy.

Likewise, an infusion of central bank funds in the world’s largest economies, thus reinforcing the prices of assets. This caused it to enrich and aggravate the inequality of many people. Leaving as a result the global personal wealth reached a record of $ 201.9 billion during the past year.

Different panorama

This has illuminated the post-crisis scenario for various banks. In fact, some have taken this as a good thing and have taken advantage of it. Among them, we can mention giants like UBS, Morgan Stanley and Bank of America. For its part, the banks were willing to attract the growing ranks of the super-rich. How? With a series of new rules due to blocked trading tables.

For its part, the United States and Europe took measures against tax evasion. This was because the business of managing the fortunes of the elite was also changing. This is rooted in that several clients draw tens of billions of dollars from Switzerland and forced private banks to look for new pockets of wealth. Meanwhile, compliance costs increased and customers began paying more attention to the rates and services they received for them.

China’s economic expansion produced an eruption in private wealth in Asia. In fact, a relevant fact is that almost 2,000 people become millionaires every day. Similarly, while China opens its market to foreign companies, an ocean of money is waiting to be exploited.

On the other hand, the funds of rich Latin Americans are flooding Miami in search of political stability and a currency of refuge.

Now, regarding the gold rush, it has been said that the end of the central bank stimulus that drove so much wealth creation is looming. Being that interest rates continue to increase in the United States. On the other hand, China is trying to stop a record loan heist.

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Source: Bloomberg

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