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Liechtenstein’s Financial System: A Report

Banking Sector

The banking sector in Liechtenstein is highly concentrated, with three largest banks accounting for 90% of total balance sheet assets. As of 2006, the assets under management were CHF 173 billion.

  • Key statistics:
    • Assets under management: CHF 173 billion
    • Three largest banks account for 90% of total balance sheet assets

Securities Activities

Securities-related activity in Liechtenstein is primarily focused on asset management for high-net-worth individuals. This service is carried out by:

  • Universal banks
  • Licensed investment undertakings
  • Asset managers

The majority of clients are located outside of Liechtenstein, with the largest number being in European jurisdictions.

  • Key statistics:
    • Most clients are located outside of Liechtenstein
    • All client assets must be held at a depository bank

Investment Funds Industry

The investment funds industry in Liechtenstein is growing quickly. As of December 31, 2006:

  • There were 28 licensed fund management companies
  • A total of 208 investment funds existed
  • Total assets under management reached CHF 26.6 billion (up from CHF 20.6 billion in 2005)

Insurance Sector

The insurance sector is regulated by the Law on Supervision of Insurance Undertakings. As of end-2006:

  • There were 35 insurance companies, with most being subsidiaries of well-known international insurance companies or banks
  • Life insurance companies accounted for more than 90% of aggregate premium and insurance company assets

Key Statistics

Here are some key statistics about the financial system in Liechtenstein:

  • Number of banks: 16 (up from 17 in previous years)
  • Assets under management by asset managers: CHF 11.2 billion as of December 31, 2006
  • Total assets of investment funds: CHF 26.6 billion as of December 31, 2006