Liechtenstein’s Banking Sector Remains Resilient Amid Global Challenges

Highly Resilient, Competitive, and Adaptable

A recent assessment by Standard & Poor’s has reaffirmed Liechtenstein’s banking sector as highly resilient, competitive, and adaptable to external pressures. The rating agency praised the country’s efficient political system, which enables a swift response to emerging challenges.

Key Factors Contributing to Liechtenstein’s Strong Rating

• Effective Legal Framework: Liechtenstein’s banking sector is characterized by a very effective legal framework that is considered fair, predictable, and conducive to orderly lawmaking.
• Progress in Implementing AML/CFT Regulations: Significant progress has been made in implementing anti-money laundering and tax evasion prevention regulations over the past decade.
  • Recognized for its effective system in combating these issues by the Committee of Experts on the Evaluation of Money Laundering Measures and the Financing of Terrorism from the Council of Europe (Moneyval report, June 2022)
• Strong Risk-Adjusted Capital Ratios: The banks assessed demonstrate their ability to withstand potential shocks with strong risk-adjusted capital ratios.

Government’s Decision to Join IMF

The Liechtenstein Bankers Association has welcomed the government’s decision to initiate accession negotiations with the International Monetary Fund (IMF) as a further step towards strengthening the country’s financial and banking centre. This move is expected to reinforce Liechtenstein’s solid foundation and contribute to its continued competitiveness in the global banking sector.

Conclusion

Liechtenstein’s banking sector continues to maintain its resilience, adaptability, and competitiveness in the face of global challenges. The country’s effective legal framework, progress in implementing AML/CFT regulations, and strong risk-adjusted capital ratios are key factors contributing to its strong rating.