‘Stability, scale and strategy’: Christoph Reich on Liechtenstein’s evolving financial centre

Christoph Reich, Group CEO of Liechtensteinische Landesbank and the new Vice President of the Liechtenstein Bankers Association, discusses how the sector is managing regulatory pressure, advancing digital transformation and adapting to shifting international client expectations.

Liechtenstein’s financial centre has spent the past decade proving a point that larger jurisdictions often struggle to make— that stability still counts, and in periods of geopolitical and regulatory turbulence it counts more than ever.

The principality’s banking sector has become a reference case in how a small, export-oriented financial hub can turn conservative risk management, disciplined supervision and a culture of longtermism into a competitive advantage. Its recently renewed AAA rating, close ties to the European single market and Switzerland, and reputation for measured innovation underpin an economy that remains steady and well-anchored, even as global conditions grow more unsettled.

Christoph Reich, the Group CEO of Liechtensteinische Landesbank (LLB) and the newly appointed Vice President of the Liechtenstein Bankers Association (LBA), is at the forefront of a sector working to maintain its established strengths while responding to technological change, stricter regulatory requirements and shifts in client behaviour.

Reich’s role places him at the centre of several practical questions, including how to update services without diluting the banking centre’s core characteristics, how to manage thegrowing compliance burden for smaller institutions, and how to strengthen Liechtenstein’s international position through targeted engagement. His focus on proportional regulation, measured digital adoption and institutional cooperation reflects the issues currently shaping policymaking and strategy across the financial centre.

Here, he outlines how these pressures and opportunities are being addressed, and how the sector intends to preserve its stability while preparing for the next phase of development.

The European: What does stepping into the role of Vice President mean to you personally and professionally?

Christoph Reich: It is an honour for me to serve as Vice President of the LBA in addition to my role as Group CEO LLB. Taking on this role involves both a personal motivation and a professional commitment. On a personal level, it affords me the opportunity to contribute to the long-term stability and competitiveness of our financial centre, which is something I care deeply about. From a professional standpoint, it allows me to actively support the sustainable development and international positioning of Liechtenstein’s banking sector.

The European: As Vice President, how will you balance continuity with fresh perspectives — bringing new ideas while respecting the Association’s established traditions?

Christoph Reich: Continuity means preserving the principles that have defined the Liechtenstein financial centre for decades: political and economic stability, trust, attractive framework conditions and long-term thinking. These fundamentals remain non-negotiable. At the same time, fresh perspectives are essential to stay competitive. Here, digital transformation is setting the direction, for example in the form of digital assets or new business models and forms of consulting. My guiding approach will be to modernise step by step, without losing the essence of our financial centre.

The European: Liechtenstein is a member of various international financial institutions and associations. Here too, Liechtenstein is a rather minor player due to its small size. What do you nevertheless hope to gain from participating in these organisations?

Christoph Reich: For a small country like Liechtenstein, international engagement and networking are crucial. That’s why we have most recently joined the International Monetary Fund (IMF). IMF membership strengthens our resilience and enhances our credibility and provides an institutional safety net, which is especially relevant given Liechtenstein’s lack of access to a national central bank in times of crisis. Furthermore, active participation enables us to establish strategic partnerships, share knowledge and best practices, and ensure that our voice is heard in global discussions on regulation and financial stability. This is invaluable for us as a niche financial centre that depends on openness and international trust. As a small financial centre, we can contribute valuable insights, including for proportionate, innovation-friendly regulation.

The European: Liechtenstein is known for its stability and innovation in finance. What opportunities do you see for the country’s banking sector in the next five years?

Christoph Reich: The opportunities lie in combining technological progress with the strengths that have always distinguished Liechtenstein. Digital transformation will help us to increase efficiency and develop new business models. For example, LLB’s investment of CHF 100 million in its “LLB One” programme illustrates how seriously we take this transformation. At the same time, our positioning in the niche market between major financial hubs creates room for growth, particularly in the German-speaking markets, which are central to the strategies of many banks in Liechtenstein. Finally, our reputation as a stable and reliable partner for long-term wealth preservation remains a key strength in an increasingly uncertain world.

The European: You are also CEO of the Liechtensteinische Landesbank. What do you see as the biggest regulatory and geopolitical issues currently facing Liechtenstein’s banks?

Christoph Reich: Liechtenstein’s banks face a combination of geopolitical uncertainty, regulatory complexity and economic pressures. Prolonged periods of low interest rates affect earnings. These global tensions create risks but also opportunities. More clients arelooking for safety and stability, qualities that Liechtenstein offers in abundance and which are becoming increasingly appreciated. We see this very clearly at our locations in Germany, for example, where our customers are particularly looking for these values.
At the same time, European regulation continues to intensify. While regulation is crucial for stability, the belief that stability can be achieved primarily through ever more rules poses challenges, especially for smaller institutions that cannot easily scale compliance. A more pragmatic, proportionate approach would be desirable. We need smart regulation so that we can stay agile and competitive, fewer detailed requirements, exceptions for low-risk institutions, simplified disclosure and reporting requirements and the elimination of duplication.

The European: The Liechtenstein banking centre impresses with its stability, which is repeatedly confirmed by international ratings. What is the model for success of Liechtenstein banks?

Christoph Reich: Our model for success is based on a combination of high political, economic and social stability. It also includes unrestricted market access to the European single market and Switzerland. Another factor is our AAA country rating by Standard & Poor’s. Our innovation-friendly environment is yet another factor. So is our high level of education. Low-risk business models of banks are also important. And finally, excellent capitalisation is a key factor. The core of Liechtenstein’s banking sector lies in long-term client relationships and conservative risk management. At the same time, we embrace innovation, but always within a framework that prioritises security and trust. Banks in Liechtenstein comply with international standards such as Basel III, and we maintain substantial liquidity buffers. This is supported by robust supervisory oversight and prudent business practices. Another decisive factor is close cooperation between the banks, the Association and the public authorities, which ensures coherence and alignment throughout the financial centre.

The European: Have you noticed a change in international customer needs, and how are banks in Liechtenstein dealing with this?

Christoph Reich: Yes, indeed. Customer needs have evolved considerably. International clients now explicitly seek safety, stability and asset protection. At the same time, they expect digital convenience but still value the personal advisory relationships typical of Liechtenstein. There is also greater awareness of geopolitical risks. As such, there is a stronger need for diversification. In response, banks in Liechtenstein have expanded their presence in key markets, refined their cross-border offerings, and invested in digital solutions. LLB’s strategic focus on Liechtenstein, Switzerland, Austria and Germany, and its strengthened footprint in Germany and Austria, reflect this shift and show how the sector is aligning its services with global trends.