Facts and figures: Liechtenstein Financial Centre

The FMA publishes its updated brochure Liechtenstein Financial Centre.

The Liechtenstein financial centre reported good results in 2020 despite the extraordinary conditions, and it remains on a growth path. The capitalisation of the banks continued to rise and is significantly higher than the EU average. The financial sector was fully functional during the Covid-19 pandemic and provided important services for the real economy, such as in payment services and lending.

The assets under management of the Liechtenstein banks, which specialise primarily in private banking and international wealth management, increased by 4.5% from CHF 349.8 billion to CHF 365.4 billion at the consolidated level as of the end of 2020, following a decline in the first half of the year due to the financial market correction. The increase was due mainly to net new money of CHF 17.7 billion. Earnings before tax for the banking sector was CHF 543.4 million. Although earnings were accordingly somewhat lower than in the previous year (CHF 639.5 million), the decline was – in light of the pandemic – limited, especially compared with other countries.

Development of the fund sector was stable. The fund volume at the end of the year was CHF 59.1 billion, compared with CHF 58.8 billion in the previous year. Assets under management at asset management companies increased by 6% in 2020 to CHF 53.0 billion.

At insurance undertakings, premium income in 2020 was CHF 5.54 billion, as in the previous year. Of the premiums written, non-life insurance accounted for CHF 3.18 billion, life insurance for CHF 2.28 billion, and reinsurance for CHF 76 million. Premium income in non-life insurance grew by 3.6%, while it fell in life insurance by 5.4%.

At the end of 2020, 17 occupational pension schemes in Liechtenstein were under the supervision of the FMA. The provisional average funding ratio was 114% as of the end of 2020. Total assets amounted to CHF 7.46 billion as of the end of 2019. Additionally, three pension funds licensed in Liechtenstein provided services in the European Economic Area (EEA) and in third countries.

At the beginning of 2020, the Token and TT Service Provider Act (TVTG) entered into force. The TVTG defines the legal requirements for providing services on TT systems. TT systems are transaction systems (such as blockchains) based on trustworthy technologies, making a wide range of economic services possible. At the end of 2020, 10 undertakings for 24 services were registered under the TVTG.