Banks In Liechtenstein
The Liechtenstein banking centre stands for quality, stability and sustainability. Liechtenstein’s banks are amongst the best capitalised financial institutions in the world and focus on private banking and wealth management.
The internationally focused banking sector plays a key role in the Liechtenstein financial centre, and is economically extremely important. The banks have traditionally concentrated on private banking and international wealth management, and have avoided the more risky field of investment banking. They offer holistic solutions, bespoke products and outstanding services. Thanks to Liechtenstein’s membership of the European Economic Area (EEA), the banks are able to offer their full range of services throughout the entire European single market. A number of banks are also active outside Europe, in particular in Asia.
Assets and capitalisation of Liechtenstein banks
According to the provisional report, the client assets under management of the 12 banks (Liechtenstein banks incl. foreign group companies) amounted to CHF 424.4 bn at the end of 2021, of which CHF 200.6 bn or 47% is attributable to the banks in Liechtenstein. The net new money inflow of the Liechtenstein banks including foreign group companies (incl. acquisitions made) amounted to around CHF 37.5 bn in 2021 (of which CHF 13.0 bn in Liechtenstein).
The total assets of the Liechtenstein banks including foreign group companies amounted to CHF 100.7 bn at the end of 2021 (of which CHF 77.3 bn in Liechtenstein). The number of part-time adjusted positions at Liechtenstein banking institutions at bank level was 2973.
The CET1 capital ratio of the entire banking sector at consolidated level was 20.5% at the end of 2021. The capitalisation is thus clearly above average in an EU comparison, and has improved further in the last year. The Liechtenstein banks are thus among the best-capitalised institutions worldwide. This guarantees a stable financial centre and security for bank clients. The Banking Industry Country Risk Assessment (BICRA) by Standard & Poor’s also classifies the banking sector in Liechtenstein in Group 2. This means that Liechtenstein is one of the countries with the lowest risk in the banking sector.
Conformity with international standards in tax matters
Liechtenstein banks fully support the government’s measures for international standard conformity in tax matters and for combating money laundering, terrorist financing and corruption, and consistently pursue a zero tolerance policy. They also promote the development of cutting-edge products and business models that take account of the sense of responsibility shown by clients towards society, sustainability and the environment.
In Liechtenstein, banking activities in general and private banking in particular are regulated by a series of laws.
Due to Liechtenstein’s EEA membership, the same regulatory requirements apply to Liechtenstein banks as to other banks from the EU area. The Liechtenstein Financial Market Authority (FMA) is responsible for supervising the banks.