The Financial Market Authority Liechtenstein has published its Financial Stability Report 2023. The results show that the country’s financial sector is stable, but there are challenges for the export economy due to the global situation.
The Financial Market Authority Liechtenstein (FMA) has published its 2023 stability report for the financial sector. According to a press release, the sector is stable overall. However, the report highlights the challenges that are currently being faced, particularly at international level. Persistent inflation and weaker growth prospects mean the financial stability risks remain high.
According to the report, the decline in global economic activity due to the sharp rise in interest rates in the past year is cause for concern. This economic stagnation is particularly noticeable in the industrial sector: the report explains that economic and structural problems have resulted in weaker external demand and curtailed export growth.
To counter this, it is important to preserve the financial sector’s lasting and solid stability. In view of growing global uncertainty, geopolitical tensions and financial turbulence, it is therefore essential to maintain a high level of capitalization and resilience in the financial sector. “For this purpose, we have at our disposal a range of macroprudential instruments that we will continue to deploy as deemed necessary,” says Mario Gassner, CEO of the FMA, in the report.