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Banking Regulations in Liechtenstein

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While there is limited information available on Liechtenstein’s banking regulations, this article provides a general overview of key aspects such as capital requirements, relationships with customers and third parties, cross-border activities, and conciliation boards.

Capital Requirements

The Financial Market Authority (FMA) regulates banks in Liechtenstein and requires them to maintain sufficient capital to cover potential losses and ensure stability in the financial system. The FMA sets minimum capital requirements for banks, which may be adjusted based on their business activities and risk profile.

  • Banks must have sufficient capital to cover potential losses
  • Minimum capital requirements are set by the Financial Market Authority (FMA)
  • Requirements may be adjusted based on business activities and risk profile

Relationships with Customers and Third Parties

The Liechtenstein Civil Code (ABGB) governs contracts and legal transactions between banks, customers, and third parties. The contract of mandate is commonly used in the banking industry, where the bank acts as an agent for its customers.

  • Banks must disclose potential conflicts of interest or fees associated with their services
  • Customers have the right to terminate contracts at any time

Cross-Border Banking Activities

Liechtenstein allows banks from European Economic Area (EEA) countries to provide banking services in Liechtenstein under the freedom to provide services, subject to notification by the competent authority of their home Member State.

  • Banks outside the EEA may only establish a branch in Liechtenstein with a license issued by the FMA
  • Notification is required for banks from EEA countries

Conciliation Board

The extrajudicial conciliation board is an alternative dispute resolution mechanism for customers and banks to settle disputes related to financial services.

  • The conciliation board acts as a mediator, encouraging discussions between parties to reach a mutually acceptable solution
  • Neither party is bound to accept the generated solution

Note

Please note that this information may not be comprehensive or up-to-date. It’s always best to consult with relevant authorities or experts for specific and accurate information on Liechtenstein’s banking regulations.