FACTBOX-Five facts about Swiss private banks

Aug 12 (Reuters) - The United States and UBS <UBSN.VX(UBS.N) have initialled agreements to settle a tax evasion dispute, sparing the Swiss wealth manager a lengthy court battle. [ID:nN1296068]

The tax dispute, which threatened Switzerland's famed bank secrecy, has been closely followed by the multi-trillion dollar global wealth management industry.

Here is some background about the Swiss private banking industry:

* Switzerland has the longest tradition of private banking and, with around $2.5 trillion in asset under management, is one of the biggest markets for wealth management.

* UBS (UBSN.VX) (UBS.N) and Credit Suisse (CS) (CSGN.VX) are the biggest wealth managers as well as the largest banks in Switzerland.

UBS is the world's second-largest wealth manager behind Bank of America, with $1,393 billion of clients' assets under management. CS has $612 billion.

* Despite the global financial crisis, Swiss private banks attracted solid net inflows of 7 percent in 2007 and 2 percent in 2008. About 65 percent came from outside western Europe, showing focus shifting towards new markets such as the Middle East, Latin America and Asia.

* UBS and CS started to move away from their traditional offshore private banking model by offering services to clients on their doorstep at the end of the 1990s. As the importance of bank secrecy recedes, other banks have also started to open more branches outside Switzerland.

* Besides UBS and CS, Switzerland has 62 private banks and 130 foreign banks who offer wealth management services. The majority of Switzerland's 24 cantonal banks are also active wealth managers.

(Sources: McKinsey, Swiss Bankers Association, Scorpio Partnership)

(Compiled by Lisa Jucca; Editing by David Cowell)