Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner,...

Liechtensteinische Landesbank AktiengesellschaftExperiences of European Banking, Rolf P. Frehner, LLB18.04.23, Seite: 1

Experiences of Banking in the Heart of Europe

Rolf P. FrehnerHead Private Banking CEE

Liechtensteinische Landesbank AG


Agenda

The Participants in the Financial Market in Switzerland and Liechtenstein

The Financial Center of Liechtenstein

Liechtensteinische Landesbank AG as an example of a state owned Bank


The Participants

Switzerland

Banks / Trustees

National Bank Switzerland

Federal Banking Commission

Swiss Bankers Association

Liechtenstein

Banks / Trustees

Financial Market Authority

Liechtenstein Bankers Association

Different Partners with different roles in the game


Banks in Switzerland / Liechtenstein

Product Variety Banks Variety

• Credit/Lending Business• Asset Management• Payment Transactions• Deposit Business• Sec. Business• Underwriting Business• Funds

• The big Banks (CS, UBS)• Cantonal Banks• Regional and Savings Banks• Raiffeisen Group• Private Banks• Foreign Banks• Other Banks

Concept of Universal Banking


Swiss National Bank

Independent Central Bank for Switzerland and Lender of last resort for Liechtenstein

Monetary Policy Ensure Price Stability

Monopoly for Banknotes in CHF

Swiss Interbank Clearing

Stability of the Financial Sector: Analysis of account sources of risk


Swiss Federal Banking Commission (FBC) / Financial Market Authority Liechtenstein (FMA)

Independent of the respective Government and participants in the market

Protection of Creditors Protection of Asset Owners Transparency of Market Stability of System Supervision over Money

Laundering

SUPERVISION

REGULATION

REPRESENTATION


Swiss Bankers Association / Liechtenstein Bankers Association

• Self Regulation has a long tradition in Switzerland and Liechtenstein

• Binding Codes of Conduct, where legislation leaves room or where it is in the industry’s interest to voluntarily set standards

• The FBC/FMA monitors the banks’ compliance with the codes of conduct

• Set of Recommendations and Guidelines, which are not monitored by FBC/FMA

Bankers Associations are important partners in the Regulatory Environment and to ensure stability of the financial market Banks are taking responsibility


Basic Principles of Swiss / FL Banks

Making Business should not be undermined by the regulatory environment

Self-Regulation- Codes of Conduct- Guidelines

Independence of Respective Organisations/Institutions Analysis Legislation Monitoring Supervision

Separation of Power

BUT:Business FIRST


The Principality of Liechtenstein

History 1719: Principality of Liechtenstein

1924: Swiss Franc becomes official currency

1978: Member of the Council of Europe

1990: Member of United Nations

1995: Member of European Economic Area

1995: Member of the World Trade Organisation (WTO)

Geography Situated in the heart of Europe between Switzerland and

Austria


Liechtenstein, a Financial Centre

Favourable Environment (1) High level of political, legal and economic continuity and

stability Conservative-liberal approach of the government Liberal economic policies and lowest level of

bureaucracy AAA country rating from Moody's and Standard & Poor's

Close links with Switzerland Open borders and economic co-operation Customs and currency union Swiss franc as legal tender


Liechtenstein, a Financial Centre

Favourable Environment (2) Highly efficient banking system / banking legislation

Stringent banking secrecy laws Best-developed financial infrastructure Well-educated personnel Highest international "due diligence" standards (also

according to the FATF)

Special corporate structures possible in Liechtenstein Asset protection / management, shareholding

and non-profit purposes Support of international trade activities Low taxes for holding and domiciliary companies

Family foundations are the most popular form


Liechtensteinische Landesbank AG

Longest established bank in Liechtenstein, founded in 1861

Transformed in 1993 from an institute under public law into an stockexchange-listed public company

Main shareholder is the Principality of Liechtenstein with

57.5 % of the share capital

State guarantee on savings deposits and the bank's own medium term notes (S&P rating AAA)

620 employees


LLB Group services

Forming and administration of companies and corporate

structures

Mutual fund management / full range of

services

Wealth Management

and family office

LLB Group

Group companies / participations

LLB Trust Company Ltd.

Jura Trust AG


swisspartners Investment Network AG

MBPI A


LLB Investment Partners AG

Global Fund Services AG

LLB Fondsleitung AG

Locations

LLB (Switzerland) Ltd., Zurich

Rep. Office Abu Dhabi

Branch Office Lugano

Cayman Islands

International presence

Universal Banking Services by LLB Vaduz


The LLB and its legal background

Own Legislation “Landesbank-Gesetz”, which describes the rights and duties, LLB has to take care of in the context of its economical responsibility

Advantages of a Partnership with the country of Liechtenstein: Stability and Reliability of the major shareholder together

with extensive shareholder capital Quality standard (AAA S&P rating) Ideal partner for Growth (NO restrictions in operative

activities of LLB) and

LLB is part of free market and has no competitive advantages


Thank you for your attention

Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner,...

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