Banks In Liechtenstein

Publication Date :

14 Feb, 2024

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Table Of Contents

What Are Banks In Liechtenstein?

Banks in Liechtenstein is an interesting topic of discussion in the global financial market. Liechtenstein is a country in Europe that has a German-speaking population. In spite of being very small in size, the country is financially well off, with a flourishing banking industry.

The banking industry in Liechtenstein is one of the most significant industries; because around 25% of the gross value added to the country stems only from financial services. A politically strong nation with a stable currency, the financial services have been growing positively and contributing to the overall growth of the citizens, ensuring strength to tide over any financial crisis.

What Are Banks In Liechtenstein?

Banks In Liechtenstein Explained

The banks in Liechtenstein are part of a very well-structured and developed financial sector that has been growing systematically and steadily over the years. The nation gets a good value addition to its overall income and development from its banking sector.

The country provides a top-class banking system that is stable, customer-friendly, and highly sustainable. They are very well-capitalized and provide a wide range of services that are focused on the creation of wealth and customer satisfaction.

This sector and list of banks in Liechtenstein of the region concentrates a lot on international services, which is very crucial for any country. A good and well-maintained banking service for international trade and commerce goes a long way in not only boosting economic growth domestically but also bringing in foreign exchange along with maintaining good and steady relations with other countries.

Traditionally, this nation has a history of avoiding any risky venture regarding the banking system, which has restricted its approach over the years. But now the sector has opened up with considerable upgradation and offers financial and investment solutions holistically which are outstanding and also well managed.

There are three reasons behind this strong banking industry in Liechtenstein –

First of all, there is political continuity in Liechtenstein which allows the financial services and banking system to grow and thrive.
Secondly, in Liechtenstein, there is a stable currency i.e. Swiss Franc.
Finally, the country has a legal certainly which allows financial services and banking sector to work peacefully.

Banks in Liechtenstein are the best-capitalized banks. Their equity ratio is around 15% on average and they also didn’t need any aid from the government during the financial crisis.

Structure

As of now, there are 16 licensed banks in Liechtenstein. The primary focus of these banks is on private banking and wealth management. And they don’t provide any services related to investment banking.

After acquiring the membership of European Economic Area (EEA) the range of products and services of list of banks in Liechtenstein have considerably increased in the European market along with active participation outside Europe, especially Asia.

As of the data collected in March 2016, it was found that the assets under management (AUM) of the banks in Liechtenstein were around the US $212 billion.

Recently 2 of the banks in Liechtenstein got closed.

The banking service and private banks in Liechtenstein are strictly regulated by various laws, that promotes client-friendly and useful products and services. They have a strong business model that encourages sustainability along with responsibility. The banks take strict measures regarding conformity with rules to combat money-laundering, tax related issues, corruption and terrorism related to finance and consistently follow them. The Liechtenstein Financial Market Authority (FMA) has the responsibility to carry on strict supervision of banks.

List Of Top 10 Banks

Given below are the private banks in Liechtenstein some most important banks of the region that are well known for their best level of services. Let us study about them in details.

LGT Bank
Liechtensteinische Landesbank AG (LLB)
VP Bank AG
Valartis Bank
Banque Havilland (Liechtenstein) AG
Bank Frick & Co. AG
Neue Bank AG
Volksbank AG
Kaiser Partner Privatbank AG
Raiffeisen Privatbank Liechtenstein AG

Let’s look at each one of them in detail -

#1. LGT Bank:

This is the largest bank of Liechtenstein in terms of total assets acquired. As per the data of 2015, it was found that the total assets acquired by this bank were 29,108.20 million CHF. As a result, the market share is also huge, around 46.61%. In 2015, LGT bank’s annual profit was 112.30 million CHF. The primary focus of this bank is on private banking and asset management. Around 808 employees work here. It is headquartered in Vaduz.

#2. Liechtensteinische Landesbank AG (LLB):

This is the second top bank in terms of total assets acquired. This bank was founded in the year 1861, almost 157 years ago. In the year 2015, the total assets acquired by LLB were 14223.20 million CHF. The market share was also commendable, around 22.78%. The annual profit in the same year was 77.60 million CHF. The primary focus of this bank is on corporate banking, private banking, and retail banking. Around 503 employees work here. Its head-quarter is located in Vaduz.

#3. VP Bank AG:

This is the third-largest bank in terms of total assets acquired. This bank was founded in the year 1956, almost 61 years ago. In the year 2015, the total assets acquired by VP Bank AG were 11083.10 million CHF. The market share was quite good, around 17.75%. The annual profit in the same year was 41.20 million CHF. The primary focus of this bank is on asset management and also on providing investment advisory for individuals. Around 524 employees work here. Its head-quarter is located in Vaduz.

#4. Valartis Bank:

This is the fourth largest bank in terms of total assets acquired. Valartis Bank was established in the year 1998, just 19 years ago. The total assets acquired by this bank in the year 2015 were 1671.00 million CHF. The market share of this bank was 2.68% in the same year. The annual profit in the year 2015 was 6.00 million CHF. Around 89 people work here. The team in the bank can speak over 20 languages. Personalized banking and asset management are the main focus of this bank. It is headquartered in Gamprin-Bendern.

#5. Banque Havilland (Liechtenstein) AG:

This is the fifth top bank in terms of total assets acquired. It was founded in the year 2014, just 3 years ago after acquiring a stake in Banque Pasche (Liechtenstein) AG. The total assets acquired by this bank in the year 2015 were 1509.00 million CHF. The market share of this bank was 2.42% in the same year. The annual profit in the year 2015 was 2.70 million CHF. Around 151 people work here. Asset management is the main focus of this bank. It is headquartered in Vaduz.

#6. Bank Frick & Co. AG:

This Bank in Liechtenstein was founded in the year 1998, just 19 years ago. In terms of total assets acquired, this bank is 6^th in the ranking. In the year 2015, the total assets acquired by Bank Frick & Co. AG was 1430.00 million CHF. The market share in the same year was 2.29%. The annual profit in the year 2015 was 1.80 million CHF. Around 45 people work here. It focuses on wealth management and investment management in real estate. Its head-quarter is located in Balzers.

#7. Neue Bank AG:

This bank stands at the seventh position in terms of total assets acquired. The total assets acquired in the year 2015 were 1178.80 million CHF. Annual profit in the same year was 7.60 million CHF. Market share in the year 2015 1.89%. This was established in the year 1992, around 25 years ago. Private banking is the main focus of Neue Bank AG. Around 56 people work here. It is headquartered in Vaduz.

#8. Volksbank AG:

Volksbank AG is the 8^th Top Bank in Liechtenstein in terms of total assets acquired. The total assets acquired in the year 2015 were 710.90 million CHF. In the same year, the market share and the annual profits were 1.14% and 5.20 million CHF respectively. It was established in the year 1997, around 20 years ago. The focus of this bank is on private banking and domestic retail banking. Around 34 employees work here. The head-quarter of Volksbank AG is situated in Schaan.

#9. Kaiser Partner Privatbank AG:

It was established in the year 1931, around 86 years ago. In terms of total assets acquired, this is on the ninth position in the ranking. In the year 2015, the total assets acquired by Kaiser Partner were 499.30 million CHF. The market share in the same year was 0.80%. In the same year, the annual profit of Kaiser Partner was 2.10 million CHF. The focus of Kaiser Partner is on private banking and wealth management. Around 34 people work here. It is a head-quarter in Vaduz.

#10. Raiffeisen Privatbank Liechtenstein AG:

This is the 10^th largest bank in Liechtenstein in terms of total assets acquired. In the year 2015, the total assets acquired by Raiffeisen Privatbank Liechtenstein AG were 304.50 million CHF. The market share of this bank was 0.49% in the same year. And in the same year, the annual profit of this bank was 1.00 million CHF. Around 28 people work here. The main focus of this bank is private banking and wealth management. The head-quarter of this bank is located in Vaduz.

The main component of the banking system of Liechtenstein is stability and sustainability. Customers have a lot of faith and trust on the services provided by these banks, resulting in a huge customer base. The overall financial sector of the region does not only restrict itself within given products and services for generating revenue, but also takes initiative for combating risks related to climate change technological developments, etc. Even their products are designed in such a manner so as to maintain accountability towards their clients.