Financial Market Authority Chief Executive Officer Mario Gassner said, o get earnings back to where they used to be we need to implement new business ideas. With classic private banking it will be difficult to attract new money. Classic private banking for many Liechtenstein banks has focused on catering to many affluent individuals throughout Europe. But as the world largest banks have shifted their resources and attention to Asia, especially China, Hong Kong, Singapore and Japan, Liechtenstein banks have not been following behind in this popular trend.
Oskar Kowaleswski, an economist at World Economic Research Institute told Asia Outbound that Liechtenstein banks should expand into Asia because of their laws are more favorable and the market is appears to be endless.
I think it a very good idea. The laws (protections) in Asia are currently more favorable in order to protect their client and more over the market has huge potential. Hence, it was a question of time to move there, said Kowaleswiki.
Many places in Asia do have sound regulations and laws for foreign banks to follow, however, the most important reason Liechtenstein banks must begin working in Asia is to diversify their client bases and revenue streams. Just about every single major bank has had operations in Asia for some time.
Liechtenstein banks lingering legal problems: A good reason to go to Asia
Liechtenstein banks legal problems should push them to begin finding roads to Asia. Since Germany used data stolen from the principality biggest bank, LGT Group in 2008, Liechtenstein wealth management assets have decreased about a fifth to $173 billion. Liechtenstein, a country that has 36,000 people, agreed in March 2009 to meet international standards to avoid being ladled as a tax haven by the Organization of Economic Cooperation and Development by sending information to the U.S government.
The principality tax authority last month wrote to their clients of Liechtensteinische Landesbank AG that the U.S. had at least $500,000 at any time since the beginning of 2004. The second largest bank in the country, LLB, is one of the 11 financial companies, including Credit Suisse Group AG, which is being investigated as part of a U.S. probe of offshore tax evasion.
Gassney said ith the OECD new tax standards there will be more information requests. /p>
The U.S. investigations in Liechtenstein tax haven may speed up their banks to expand in Asia. Kowaleswiki said, he problem of investigation only speeded up the process to move to Asia. Banks with deposits in Asia will be attractive to European and US customers, while Europe to Asian customers. So it a win:win strategy. /p>
