will the swiss bank money find its way in to stock markets

ZURICH (Reuters) - Swiss bankers will have to market the country's stability and expertise as selling points after an agreement with U.S. authorities over UBS accounts effectively ended Switzerland's days as a tax haven.

Swiss bank secrecy remains only in name after the deal to disclose details of about 4,450 wealthy American clients of UBS to U.S. authorities on Wednesday, removing a major advantage for the country's wealth managers.

"This is a major victory for the U.S.," said Fox-Pitt Kelton analyst David Williams in London. "Bank secrecy is dead."

Swiss National Bank data from May said Swiss banks held around 2.9 trillion Swiss francs ($2.7 trillion) in assets, and 3.9 trillion francs in custody accounts including 1.1 trillion francs held for private clients.

With bank secrecy compromised, the size of the Swiss financial industry could be cut to between 6 percent and 7 percent of the gross domestic product from 12 percent, private banker Ivan Pictet has said.

That means the Swiss will now have to flaunt the Alpine country's economic and political stability to capture new clients in markets where finding a safe haven for your money is more urgent than dodging the taxman.

"Secrecy is only one attraction of the Swiss banking place among others such as the country's low debt, low inflation and a currency that did not have to be reformed even in the 1930s," said Boris Zuercher, head of economic policy at think tank Avenir Suisse.

Most assets held by Swiss private banks belong to citizens of the European Union, which would soon take similar action to the United States, Fox-Pitt Kelton's Williams said.  Continued...