How many banks in liechtenstein

It has handled around CHF It employs more than 34 people. Raiffeisen Privatbank Liechtenstein AG is part of Austrian Raiffeisen Banking Group and this bank stands at number 10 in this list which was founded in and it has headquarter located in Vaduz.

Bank offers investment advisory services, traditional asset management, and estate management. Around more than 28 people work in this bank. This has been a guide to Top banks in Liechtenstein. Here we have discussed the 10 topmost banks in Liechtenstein with their financial structure. You may also look at the following articles:. Submit Next Question. By signing up, you agree to our Terms of Use and Privacy Policy. Forgot Password? This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy.

By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy. Popular Course in this category. Course Price View Course. Free Investment Banking Course. Login details for this Free course will be emailed to you. Owing to the very limited home market, Liechtenstein banks are very internationally-oriented and have representations in more than 20 countries. Their activities traditionally focus on private banking and wealth management.

They do not engage in investment banking and carry comparatively low risks. Liechtenstein is also affiliated to the Swiss payment systems and, together with Switzerland, switched in to the new ISO payment transaction standard.

Liechtenstein is also a SEPA participant. Due to the narrow business model of the Liechtenstein banking sector, the lending business focuses on mortgages, which increased by 0. Total loans are stable around CHF Commercial loans do not have a significant share of the loan portfolio of Liechtenstein banks. Deposits were stable at CHF LGT is one of the pioneers in this area, not just in Liechtenstein but worldwide as well.

Consequently, the positive trend towards sustainable investments from the last years onwards has persisted, and the percentage of sustainable investments continuously increased. If the board of directors consists of five or more members, it may delegate responsibilities not expressly reserved by law to a committee composed of at least three board members.

Banks of material significance for the national economy have to set up — in addition to the standard committees — a risk committee, remuneration committee, nomination committee and an audit committee. Members of the management board may not at the same time be members of the board of directors of the same bank.

Liechtenstein banks are required to stipulate and implement sound remuneration policies pursuant to the requirements set out in the CRR and Annex 4. Banks of material significance have to set up a remuneration committee consisting of members of the board of directors.

Banks also need to have an internal audit department that reports directly to the board of directors of the bank. For the sake of clarity, the business operations of a Liechtenstein bank shall be examined and audited every year by an external, independent audit company, which shall be acknowledged by the FMA. Furthermore, banks shall have a risk management system independent of the operational business, a dedicated compliance department, and appropriate procedures by which employees can report violations of the BankG and the CRR.

Personnel charged with key functions need to have a good repute as well as adequate experience and professional qualifications. The effective place of management of a bank has to be in Liechtenstein. For this reason, the FMA requires the members of the management board to effectively work in and from Liechtenstein.

In addition, a bank has to demonstrate in the licensing process that it will have sufficient substance in the form of office space and key personnel employed in Liechtenstein to be able to effectively operate its business in and from Liechtenstein. Banks may outsource certain key functions, such as the internal audit function, with the prior approval of the FMA.

Other functions may be outsourced without the prior approval of the FMA if the outsourcing guidelines pursuant to Annex 6 BankV are observed. The overall direction, supervision and control of the bank by the board of directors and the core management duties may not be outsourced. The outsourcing providers may be located in and outside of Liechtenstein.

The bank is required to act with due diligence when selecting and instructing an outsourcing provider, and has to have appropriate resources to adequately monitor the outsourcing provider on a continuing basis. A bank must have a fully paid-up capital of at least 10 million Swiss francs or the equivalent in euros or US dollars at the time of its authorisation.

In the case of investment firms, the minimum capital must amount to at least , Swiss francs or the equivalent in euros or US dollars. The FMA has the power to reduce the amount of the initial capital in certain cases, taking into account the nature and scope of the intended business of a bank or investment firm.

In Liechtenstein, there is no law that exclusively governs the relationship between banks on the one hand and customers and other third parties on the other hand. From the various types of contracts laid down in the ABGB, the contract of mandate is probably deployed most often in the banking business. He is, even though he has been granted a limited power of attorney, entitled to use all means that are necessarily connected with the nature of the transaction or conform to the declared intention of the principal.

If he exceeds the limitations of the power of attorney, he is liable for the consequences. If, however, the agent is a bank, an investment firm or an asset management company, it may, except in the case of independent investment advice and portfolio management, assume that the principal has waived his right to be transferred any fees, commissions or grants received or still to be received by the agent from third parties, provided that: a the agent has complied with all of its disclosure obligations prior to the conduct of business; and b the principal has instructed the agent to carry out the transaction after such disclosure.

Furthermore, the agent is obliged to point out the mentioned legal consequences in its General Terms and Conditions or other pre-formulated terms and conditions of business, as the case may be cf.

Having said that, Liechtenstein banks usually have their own General Terms and Conditions on which they would base any relationship to their customers. In order to be valid and applicable, General Terms and Conditions need to meet certain criteria. Firstly, unusual provisions used by the bank in General Terms and Conditions or standard contract forms do not become part of the contract if they are detrimental for the customer and the customer would not have to expect these provisions due to the circumstances, in particular due to the formal appearance of the contract, unless the bank expressly made the customer aware thereof cf.

Furthermore, a contractual provision contained in General Terms and Conditions, which does not determine either of the mutual main obligations, is void in any event if it causes a substantial imbalance of the contractual rights and obligations to the detriment of the customer when considering all circumstances of the case cf.

The KSchG, which per definition contains more favourable provisions for customers, supersedes provisions of the ABGB that were otherwise applicable amongst individuals. As a principle, a bank shall be entitled to take up its business in Liechtenstein only on the basis of a licence issued by the FMA. Yet, under the freedom to provide services, a bank having its seat in one of the countries of the EEA may also take up its banking activity in Liechtenstein provided the competent authority of its home Member State has notified the FMA prior to its first-time activity in Liechtenstein passport.

A bank outside the EEA may provide banking services in Liechtenstein only through a branch in Liechtenstein. The establishment of such branch shall be subject to a licence that shall be issued by the FMA. By virtue of the ordinance of 27 October on the extrajudicial conciliation board in the financial services sector Verordnung vom The conciliation board may be called upon — amongst others — to settle disputes between customers and banks about the services provided by the bank.