Liechtensteinische Landesbank (LLB): A Model of Financial Stability

Financial Stability and Credit Management

The annual report from Liechtensteinische Landesbank (LLB) highlights the bank’s commitment to financial stability and sound credit practices. Here are some key points that demonstrate LLB’s focus on these areas:

• Deposits Rating: LLB has a deposits rating of Aa2 from Moody’s, placing it among the highest-rated banks in the world.
• Loan Volume: The majority of loans (90.3%) were secured by mortgages, with a total loan volume increasing to CHF 15.3 billion at the end of 2023.

Risk Management and Compliance

LLB takes a proactive approach to risk management and compliance:

• Risk-Conscious Credit Policy: LLB pursues a risk-conscious credit policy that evaluates each loan application objectively and independently of market pressures.
• Compliance Organization: The bank addresses legal risks and other areas through its compliance organization, including:
  • Combating money laundering and financing of terrorism
  • Tax compliance
  • Regulatory requirements
• Internal Control System (ICS): The ICS is an integral part of the Group-wide risk management, monitoring risks in business processes through effective control processes guided by industry standards.

Business Continuity Management

LLB has a robust Business Continuity Management (BCM) system that ensures crisis management is effective and comprehensive:

• Crisis Management: LLB’s BCM has been demonstrated to be effective during recent crises such as the electricity shortage and the corona pandemic.