Hyposwiss Privatbank, the Zurich-based private bank, and its parent company St Galler Kantonalbank, the cantonal bank of St Gallen, will now be able to offer private banking and other financial services in Germany.

The banks have acquired authorisation for cross-border banking and financial services by BaFin, the German financial regulator. The banks will offer these services from Switzerland through its wholly-owned subsidiary company St Galler Kantonalbank Deutschland, which is based in Munich.

Since 2004, banks from countries outside the European Union or the European Economic Area, such as Switzerland, are only able to offer cross-border banking in Germany with a special authorisation by BaFin.

The canton of St Gallen holds 54.8 per cent of St Galler Kantonalbank. Besides Hyposwiss Privatbank, it also offers private banking through Hyposwiss Private Bank Genève, which it acquired in 2008.