Explained: Why wealthy Indians are worried about the Credit Suisse collapse

Although Swiss banks have been often associated with black money in India, the country is globally known for financial management and regulatory oversight.The Credit Suisse collapse and the deal brokered by Swiss regulators for rival lender UBS to rescue it, has already shaken up the country's position as a financial hub.

The CEO of research firm Opimas, Octavio Marenzi has gone as far as to call Switzerland a financial banana republic, with two banking majors merging into just one financial giant.

Changing equations for Indian investors

• With the confidence in Switzerland's stability hit by the Credit Suisse fiasco, wealthy Indians are apprehensive about Swiss banks.

• They have been concerned about the way in which several foreign lenders such as UBS, CitiGroup and Morgan Stanley have entered and exited India in 15 years.

• As big investors seek stability, the financial institutions haven't been able to make money from millionaires who focus on value, and aren't keen on paying for advise.

Why are the wealthy worried?

• The Credit Suisse collapse has further triggered anxiety among wealthy Indians, about the business strategies of global banks.

• They also want wealth managers and advisors to conduct their operations in a stable and consistent manner.

• Swiss banks have been a favoured destination for high net worth investors globally, but years of controversy at Credit Suisse resulting in a crash may change that.