Institutional framework
The responsibility of macroprudential policy and supervision in Liechtenstein is spread among several institutions. The Financial Stability Council (FSC) is the central body for macroprudential policy and supervision in Liechtenstein. In addition, the FMA as well as the government play a central role in the institutional framework. The FSC interacts with the European Systemic Risk Board (ESRB) at the European level, where Liechtenstein is an active member since 2017. Moreover, macroprudential supervision in Liechtenstein is, where necessary, collaborating with relevant authorities in Switzerland, in particular with the Swiss National Bank (SNB), and with national authorities from the European Economic Area that are responsible for safeguarding the stability of the financial system.
FMA
The FMA is the competent authority for macroprudential supervision, for safeguarding financial market stability and for applying macroprudential measures in Liechtenstein. According to Article 4 FMA Act, the FMA safeguards the stability of the financial market in Liechtenstein, the protection of customers, the prevention of abuse, as well as the implementation of and compliance with recognised international standards. The FMA provides its financial stability analyses and studies as well as its macroprudential findings to the FSC. Based on these findings, the FSC proposes macroprudential measures, recommendations and warnings. Moreover, the FMA is serving as secretariat to the FSC and is responsible for preparing the agenda and the documents for the meetings. In particular, the annually published financial stability report serves as a comprehensive risk analysis for the Liechtenstein financial market.
Ministry of General Government Affairs and Finance
The government decides on the implementation of macroprudential instruments within the framework of the existing legislation and, hence, defines the operational framework for macroprudential policy in Liechtenstein. In addition, the government can issue an ordinance regarding the calibration of certain macroprudential instruments (e.g. the size of the countercyclical capital buffer).