LLB’s Stability and Financial Strength Receive Top Rating
Liechtensteinische Landesbank (LLB) has once again demonstrated its commitment to prudent finance and risk management, earning a top rating for its stability and financial strength. This recognition serves as a testament to the bank’s dedication to safeguarding customer deposits while fostering economic growth in the region.
Credit Management: A Key Focus Area
At the heart of LLB’s success lies its credit management strategy, which prioritizes securing mortgages and providing tailored financing solutions to private individuals, companies, small businesses, and public institutions. The bank’s expertise in this area has enabled it to consistently grow its market share, with:
- 89% of loans made during the reporting year being secured by mortgages
- A focus on individual evaluations of loan applications, conservative assessments of collateral values, and compliance with standard equity requirements
Adapting to Uncertainty
In response to the COVID-19 pandemic, LLB demonstrated its ability to adapt quickly and effectively, providing:
- Bridging loans with minimal bureaucracy
- Targeted support to corporate clients facing liquidity challenges
- Swift action to mitigate the impact of the crisis on local businesses and communities
Enhanced Risk Management
As a responsible financial institution, LLB has implemented enhanced risk management measures to address the increased loan default risk caused by the pandemic. The bank has:
- Subjected its credit positions to an additional systematic risk-based analysis
- Increased provisioning accordingly
- Implemented proactive approaches to ensure robustness in the face of uncertainty
High Standards of Lending
LLB’s lending practices are guided by a conservative credit risk policy, which includes:
- Individual evaluations of loan applications
- Conservative assessments of collateral values
- Compliance with standard equity requirements
- Differentiated control processes to reliably fulfill its performance mandate while taking appropriate account of risks
Compliance and Risk Management
The LLB Group has a comprehensive compliance program in place, focusing on three key areas:
- Combating money laundering and terrorist financing
- Implementing tax compliance measures
- Ensuring regulatory requirements are met
- Internal audit function to ensure the effectiveness of these controls
Cybersecurity Measures
In light of the increasing cyber threats posed by the pandemic, LLB has prioritized cybersecurity, investing in:
- Robust IT systems
- Employee training
- Advanced security measures to protect customer data
Internal Control System
LLB’s internal control system contributes to risk transparency within the company, monitoring risks in relevant business processes through effective control processes. The bank’s commitment to maintaining high standards of governance and compliance has been recognized by regulatory bodies.
Business Continuity Management
In the event of a crisis or catastrophe, LLB’s business continuity management plan ensures that critical decisions are made efficiently and effectively, minimizing disruption to customers and stakeholders.
As a leading financial institution in Liechtenstein, LLB continues to demonstrate its commitment to stability, security, and customer satisfaction. The bank’s latest rating is a testament to its unwavering dedication to upholding the highest standards of governance and compliance.