LIECHTENSTEIN Law and Practice Contributed by: Bernhard Rankl, Nicolai Binkert and Alexander Appel, Schurti Partners Attorneys at Law Ltd
Schurti Partners Attorneys at Law Ltd Zollstrasse 2 9490 Vaduz Liechtenstein
Tel: +41 44 244 2000 Fax: +41 44 244 2100
Email: mail@schurtipartners.com Web: www.schurtipartners.com
1. Loan Market Overview 1.1 The Regulatory Environment and Economic Background Economic Cycles
this stability. In summary, Liechtenstein’s economic outlook is cautious, marked by weak real-sector per- formance, but its financial sector remains a source of resilience, cushioning the broader economy against global uncertainties. Most recently, Liechtenstein’s economy has also been affected by US tariffs. Due its membership of the Euro- pean Economic Area, the applicable tariff is 15% and, as such, is identical to the percentage imposed on the EU countries, but is considerably lower than the tariff Unlike its neighbour Switzerland, Liechtenstein has been part of the European Economic Area (EEA) since 1995 and therefore not only offers the same regulatory standard and framework as other European member states, but also grants full access to the EU markets. For this reason, Liechtenstein is often used by non- EEA, international companies as a hub for penetrating the European markets. On the other hand, market par- ticipants also benefit from Liechtenstein’s traditionally close ties with Switzerland, granting privileged access to the Swiss market. Besides having entered a bilater- al customs union with Switzerland in 1923, Liechten- stein is part of the Swiss-franc monetary area, giving its financial institutions the same access to refinancing with the Swiss National Bank as Swiss institutions. The close integration into the EEA markets is under- pinned by the latest revision of the regulatory frame- work applicable to credit institutions and investment firms, which cuts ties with its historical basis derived from the Swiss Banking Act and establishes structural imposed on Switzerland. Regulatory Environment
In the first half of 2025, the global economic outlook deteriorated as a result of rising trade tensions, weak- er growth in the US, and increased financial-market volatility. Despite this, Liechtenstein’s economy remains relatively resilient, though is not untouched by international developments. It continued its slowdown from 2024, with a real GDP contraction of around 1% expected for the year. This reverses the brief uptick seen in 2023. Exports dropped by 3.7% year on year in Q1 2025, reflecting the broader decline in global trade and the impact of growing protectionism. In con- trast to the subdued real economy, the financial sector – and particularly banking – has proven robust. Total client assets under management by Liechtenstein banks reached a new high of almost CHF510 billion in Q1, driven by strong net inflows of over CHF9 bil- lion. Although global markets had a negative impact of CHF3 billion on asset values, heightened volatility cre- ated short-term revenue opportunities for banks with capital-markets exposure. This particularly benefited Liechtenstein’s banks, which are focused on private banking and asset management. Key financial indica- tors remain solid: the core capital ratio (CET1) rose to 19.3%, and liquidity levels are strong, providing an important buffer against external shocks. Despite the external risks – including volatile markets, inflation uncertainty, and geopolitical tensions – Liechtenstein’s financial sector continues to act as a stabilising pillar of the national economy. High capitalisation, prudent regulation, and diversified business models underpin
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