Switzerland's highly diversified, high-income, competitive, and flexible economy supports our very low risk assessment of its economic resilience, as do its very high income levels and very robust government finances. The banking system's high and very stable customer-deposit base contributes to our very low risk assessment of systemwide funding, facilitated by minimal dependence on net external borrowing, and supportive domestic debt capital markets. A very low credit growth mitigating a moderate rise in property prices supports our assessment of very low economic imbalances. Continuing house price growth might pose future credit risks, while private sector debt remains moderately high, despite a conservative risk and lending culture in domestic markets. The precrisis history of financial regulation in preventing accumulation of high
