Strengthening Financial Stability in Liechtenstein

The Financial Market Authority (FMA) plays a crucial role in maintaining the stability of the Liechtenstein financial system. In recent years, the FMA has launched several initiatives to address emerging risks and challenges, ensuring the continued confidence of investors and consumers.

Initiatives for Stability

Capital Buffers

The FMA conducts an annual analysis to identify systemically relevant institutions in Liechtenstein. The results are reported to these institutions, which may be assigned an additional capital buffer of up to 2% of their total risk amount. This measure aims to ensure that financial institutions have sufficient resources to absorb potential losses and maintain stability.

Recovery and Resolution

The FMA is responsible for resolving bank failures and has established a resolution authority within its organizational structure. The authority’s key tasks include:

• Drawing up resolution plans
• Applying resolution tools
• Exercising resolution powers to ensure the continuity of critical functions, protect public funds, and safeguard client assets

Specific Fields of Business

Liechtenstein has introduced regulations on token and trustworthy technology service providers (e.g., blockchain), which require registration and supervision by the FMA. The government has also adopted an ordinance regulating:

• Know-your-customer requirements
• Anti-money laundering measures
• Customer documentation requirements for these services

Aims and Objectives

The FMA’s initiatives aim to ensure the stability of the Liechtenstein financial system, protect public funds, and safeguard client assets in the face of emerging risks and challenges. By adopting a proactive approach to regulation and supervision, the FMA is helping to maintain confidence in the financial system and promote economic growth.