Banks in Andorra are clearly not shy about promoting their private banking activities. When driving into the small principality from Spain, a visitor's first sight is a large advertisement for the private banking services of Banc Internacional d'Andorra - Banca Mora (BIBM), one of the country's five banks. Next is a similar banner for BIBM's rival, Andbanc. And immediately after that, the visitor's attention is attracted by a giant outdoor poster for Banca Privada d'Andorra, publicising its wealth management capabilities.
Private banking, based on a tradition of bank secrecy, has been one of the main reasons behind the remarkable wealth achieved by this country of 75,000 people, which has kept its independence since 1278 despite being sandwiched between two large neighbours, France and Spain. Andorra's financial sector accounts for about 16% of the country's gross domestic product, and assets held by its five banks amount to 500% of the country's total wealth, according to ratings agency Standard & Poor's.
