Collateral lending policy
In 2011, we constantly served the needs of our clients in Liechtenstein and eastern Switzerland. We supported municipalities, companies, small businesses and private persons to finance their plans for the future. The majority of the loans, i.e. 84 percent, were loans secured by mortgages. Moreover, we granted operating loans and Lombard loans.
The LLB Group's collateral lending policy strictly follows market-economy principles. Every decision is individually tailored to fit the needs of each private or corporate client. Experienced specialists examine the creditworthiness of new borrowers and establish their risk category. We grant individual loans after appraising risks and profitability according to specific guidelines. We implement a risk-related pricing policy by allocating costs according to the costs-by-cause principle.
Credit risk management is of central importance for our Group. Besides systematic risk/return management at the individual loan level, we also monitor our default risks at the portfolio level. The primary objectives are: to reduce the overall risk through diversification and to generate a constant return. These are decisive cornerstones of our collateral lending policy, which aims at maintaining our competitiveness.