Here is the converted article in markdown format:
European Financial Institutions Receive Top Rating for Stability and Financial Strength
In a recent assessment, European financial institutions have received a top rating for their stability and financial strength. The LLB Group, in particular, has demonstrated its prudent approach to finance and risk management.
Credit Management: Supporting Individuals and Businesses
The LLB Group is committed to supporting private individuals, companies, small businesses, and public institutions in financing their future plans. In the past year, the institution has continued to grow its market share of loans to customers, with 89% of its CHF 11.7 billion portfolio comprised of credits secured by mortgages.
Managing Risk and Liquidity
The LLB Group has taken proactive measures to manage risk and liquidity during the COVID-19 pandemic. The institution provided bridging loans quickly and with minimal bureaucracy, as well as targeted support to corporate clients through interest or amortization deferrals. This helped to maintain a robust credit portfolio, which was valued at CHF 13.2 billion by the end of 2020.
High Standards of Lending
The LLB Group is known for its conservative credit risk policy, which includes:
- Individual and differentiated evaluation of loan applications
- Conservative assessment of collateral values
- Compliance with standard equity requirements
The institution’s high standards of lending have been recognized by regulatory bodies, including the Swiss Financial Market Supervisory Authority (FINMA) and the European Banking Authority.
Independent Credit Decisions
The LLB Group’s credit decisions are made independently of market pressures and targets, ensuring that risk is assessed objectively and without conflict of interest. The institution’s credit competences are assigned according to knowledge and experience, with the authority to grant credit lying with the back office and superordinate Credit Committees.
Compliance Risks
The LLB Group takes compliance risks seriously, focusing on three key areas:
- Combating money laundering and terrorist financing
- Tax compliance
- Regulatory requirements
The institution’s internal audit function ensures the effectiveness of controls, while employees are regularly trained on regulatory changes and sensitized to potential money laundering indicators.
Cybersecurity
Protection against cyber attacks is a top priority for the LLB Group, with robust processes and advanced systems in place to safeguard customer data. The institution regularly raises awareness among staff, advisors, and clients about the threat of cybercrime and specific fraud schemes.
Business Continuity Management
The LLB Group’s business continuity management (BCM) function ensures that critical decisions can be made in the event of a crisis or catastrophe. The institution has demonstrated its crisis-proof BCM during the COVID-19 pandemic, which has been shown to be efficient and comprehensive.
In conclusion, the LLB Group’s commitment to stability, financial strength, and prudent risk management has earned it a top rating from regulatory bodies. The institution’s high standards of lending, independent credit decisions, and robust compliance and cybersecurity measures have contributed to its strong reputation in the European financial industry.