Financial Crime World

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Liechtensteinische Landesbank (LLB) Annual Report Excerpt

Financial Performance

Key Highlights

  • High level of financial stability and security: LLB’s comfortable capital situation allows for further acquisitions, ensuring long-term sustainability.
  • Strong deposits rating: Aa2 rating from Moody’s is one of the highest in the world, indicating stability and financial strength.

Credit Management

Loan Growth and Securitization

  • Loans made during the reporting year: CHF 13.8 billion were extended to clients, with a significant portion (90.3%) secured by mortgages.
  • Market share growth: The bank successfully increased its market share of loans, reaching CHF 15.3 billion in volume at the end of 2023.

Risk Management

Credit Policy and Governance

  • Authorization process: Loans are granted based on a level of knowledge and experience, as well as the type of loan, ensuring informed credit decisions.
  • Risk-conscious approach: Loan applications are evaluated separately and conservatively, with a focus on collateral value assessment.

Compliance Risks

Risk Management Process

  • Compliance organisation: A dedicated team focuses on combating money laundering, financing terrorism, tax compliance, and regulatory requirements.
  • Three lines of defence: The compliance organisation is part of the risk management process, comprising:
    • First line: Day-to-day business operations
    • Second line: Monitoring and control functions
    • Third line: Internal audit

Cyber Risks

Information Security Measures

  • High priority on protection: LLB prioritizes protecting against cyber attacks through IT systems and trained employees.
  • Information security guidelines: Requirements are set out in company-wide guidelines, implemented through technical and organisational measures.

Overall, the text suggests that Liechtensteinische Landesbank is committed to maintaining a strong financial position, managing risks effectively, and complying with regulatory requirements.