About 60 to 70 Swiss private banks are facing serious problems that could force them to shut down or put themselves up for sale, according to a study published last week.

The study, prepared by the consulting firm K.B.M.G.), noted that these banks—which are struggling with falling profits due to fierce competition and a global crackdown on tax evasion—must work to cut costs and acquire competitors to achieve an appropriate scale.

However, the study concluded that many of these banks will ultimately have to exit the market. “I am convinced that at least half of them will disappear,” said Christian Hunterman, a director at KPMG.

He added that some international financial groups are already examining the future of their private banking branches in Switzerland.

The study, conducted by KPMG in collaboration with the University of St. Gallen, examined 85 of 114 Swiss private banks. The study did not include UBS and Credit Suisse.

It found that at most 10 to 15 of those banks will be able to grow and attract large numbers of new international clients, and that another 20 to 30 banks may have a future in specialized activities focused on specific client groups.

According to the data, the number of Swiss private banks has already fallen by more than a third from 180 in 2005.