Transcript Experiences of Banking in the Heart of Europe
Experiences of Banking in the Heart of Europe
Rolf P. Frehner Head Private Banking CEE Liechtensteinische Landesbank AG
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 1
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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 2
The Participants Switzerland Liechtenstein
Banks / Trustees
National Bank Switzerland
Federal Banking Commission
Swiss Bankers Association
Banks / Trustees
Financial Market Authority
Liechtenstein Bankers Association Different Partners with different roles in the game
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 3
Banks in Switzerland / Liechtenstein Product Variety
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Credit/Lending Business Asset Management Payment Transactions Deposit Business Sec. Business Underwriting Business Funds Banks Variety
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The big Banks (CS, UBS) Cantonal Banks Regional and Savings Banks Raiffeisen Group Private Banks Foreign Banks Other Banks
Concept of Universal Banking
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 4
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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 5
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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 6
Swiss Bankers Association / Liechtenstein Bankers Association
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Self Regulation has a long tradition in Switzerland and Liechtenstein
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Binding Codes of Conduct, where legislation leaves room or where it is in the industry’s interest to voluntarily set standards
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The FBC/FMA monitors the banks’ compliance with the codes of conduct
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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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 7
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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 8
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 Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 9
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 Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 10
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 Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 11
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 Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 12
LLB Group services LLB Group Universal Banking Services by LLB Vaduz Forming and administration of companies and corporate structures Wealth Management and family office Mutual fund management / full range of services International presence Group companies / participations
LLB Trust Company Ltd.
Jura Trust AG
Group companies / participations
swisspartners Investment Network AG MBPI A
Group companies / participations
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 Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 13
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
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 14
Thank you for your attention
Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.05.2020, Seite: 15