Liechtenstein's problems with the German tax authorities have cast a shadow over neighbouring Switzerland, the cradle of private banking, where an estimated one third of the world's total offshore assets are held.

Vontobel, the Swiss private bank, was yesterday dragged into the net. The concerns about bank secrecy come just as UBS, Switzerland's biggest bank, faces shareholders in Basel today, who are enraged that a company once renowned for stability could lose more than $18bn on US subprime securities.