A good equity ratio not only protects reputations, it is also part of the economically and financially trustworthy behaviour of a bank. LLB is considered to be of systemic relevance to the national economy of Liechtenstein. It is therefore part of our identity to have a sufficiently high-quality capital base at our disposal. Creditworthiness – even in difficult times – offers clients, shareholders and employees an important added value. We are convinced that a strong capital base will be a definite competitive advantage in the future.
Our capital base covers the capital needs required for our objectives and meets the supervisory authorities' requirements. The LLB Group's financial power supports the growth strategy and shall remain unaffected by the capital market's fluctuations. With scenario analyses and stress tests, respectively, we simulate external influences and show how these affect our capital base.
The LLB Group manages its capital prudently. At the end of 2011, the LLB Group had a solid capital base of CHF 1.6 billion at its disposal, which corresponds to a tier 1 ratio of 13.9 percent (31 December 2010: 13.9 %; 31 December 2009: 13.7 %). Today, our «hard» core capital already significantly exceeds the levels prescribed by the Basel III international equity standards, which will come into effect at the start of 2013. We want to continue to guarantee our clients an above-average security level. That is why one of our medium-term goals is to raise the tier 1 ratio to 16 percent by 2016 at the latest.