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Private bank is a special personalized financial and
banking offering for wealthy persons called high net worth individuals or
HNWIs.
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These banks have a long tradition in Switzerland,
dating back to at least the Revocation of the
Edict of Nantes (1685). Private banks also have a long tradition in the UK where C. Hoare & Co. has been in business since 1672.
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There wealthy individuals normally have more than US$1
million. However, “entrance fee” for some banks can be higher
– US$5 million or even $US30 million.
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"Private banks" can also refer to non-government owned
banks in general, in contrast to government-owned (or nationalized)
banks.
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Private banking forms a more exclusive (for the
especially affluent) subset of wealth management. At least until
recently, it largely consisted of banking services (deposit taking and payments),discretionary asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager.