Liechtenstein’s Banking Sector Continues to Shine Despite Global Challenges
According to a recent report by Standard & Poor’s (S&P), Liechtenstein’s efficient political system has enabled the country to adapt quickly to external challenges, making its banking sector resilient, competitive, and extremely flexible.
Efficient Political System Key to Success
The rating agency praised Liechtenstein’s legal framework as very effective, fair, and predictable, allowing for orderly development of laws without sudden changes. This stable environment has significantly contributed to the country’s financial stability, according to a press release by the Liechtenstein Bankers Association.
Strong Progress in Anti-Money Laundering and Tax Evasion Prevention
S&P also commended Liechtenstein on its significant progress in implementing anti-money laundering and tax evasion prevention regulations over the past decade. This assessment was echoed in a recent report by Moneyval, published in June 2022, which recognized Liechtenstein’s effective system for combating money laundering and terrorist financing.
Strong Risk-Adjusted Capital Ratios
Furthermore, S&P praised the strong or above-average risk-adjusted capital ratios of the banks assessed, providing a solid foundation for the country’s financial sector. The Bankers Association welcomed the government’s decision to start accession negotiations with the International Monetary Fund (IMF) as an important step in further strengthening Liechtenstein’s good starting position and its status as a financial and banking centre.
Key Takeaways
- Liechtenstein’s efficient political system has enabled the country to adapt quickly to external challenges.
- The country’s legal framework is very effective, fair, and predictable, contributing to financial stability.
- Significant progress has been made in implementing anti-money laundering and tax evasion prevention regulations over the past decade.
- Strong risk-adjusted capital ratios provide a solid foundation for the country’s financial sector.