Report on the stability of the Liechtenstein financial sector

Overall, the analysis concludes that Liechtenstein’s financial sector is sound and stable. Nevertheless, macroprudential policy must remain vigilant in face of some recent global and domestic developments. At the global level, the low interest rate environment, increasing inflation rates and stretched valuations both in stock and bond markets may be associated with increasing challenges for financial intermediaries going forward. From a domestic perspective, the high indebtedness of private households in light of increasing mortgage debt deserves closer attention.

Financial Stability Report 2021