Liechtenstein’s financial sector remains stable
Liechtenstein's financial sector remains stable despite the weakening global economy.
The Financial Market Authority Liechtenstein (FMA) has published its seventh annual Financial Stability Report. As Liechtenstein does not have a national central bank, the FMA is legally tasked with ensuring financial stability in the country.
According to the Financial Stability Report it is nevertheless crucial to monitor global developments, address risks and maintain strong capital buffers to ensure long-term stability.
While the global economy has weakened further due to high interest rates and increasing geopolitical tensions, macroeconomic trends are also being felt in the financial sector, according to the report.
Although the Liechtenstein financial sector remains stable, continues the FMA, it is crucial to closely monitor global trends and address the identified risks in order to ensure long-term stability. With increasing global uncertainties, geopolitical tensions and financial turbulence, it is also vital to maintain strong capital buffers and a high level of resilience within the financial sector, according to the report. The authority adds that strict adherence to international standards and proactive management of reputational risks are also essential.
