1. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 1 Experiences of Banking in the Heart of Europe Rolf P. Frehner Head Private Banking CEE Liechtensteinische Landesbank AG

2. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 2 Agenda  The Participants in the Financial Market in Switzerland and Liechtenstein  The Financial Center of Liechtenstein  Liechtensteinische Landesbank AG as an example of a state owned Bank

3. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 3 The Participants Switzerland  Banks / Trustees  National Bank Switzerland  Federal Banking Commission  Swiss Bankers Association Liechtenstein  Banks / Trustees  Financial Market Authority  Liechtenstein Bankers Association Different Partners with different roles in the game

4. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 4 Banks in Switzerland / Liechtenstein Product VarietyBanks Variety Credit/Lending Business Asset Management Payment Transactions Deposit Business Sec. Business Underwriting Business Funds The big Banks (CS, UBS) Cantonal Banks Regional and Savings Banks Raiffeisen Group Private Banks Foreign Banks Other Banks Concept of Universal Banking

5. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 5 Swiss National Bank  Independent Central Bank for Switzerland and Lender of last resort for Liechtenstein  Monetary Policy  Ensure Price Stability  Monopoly for Banknotes in CHF  Swiss Interbank Clearing  Stability of the Financial Sector: Analysis of account sources of risk

6. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 6 Swiss Federal Banking Commission (FBC) / Financial Market Authority Liechtenstein (FMA)  Independent of the respective Government and participants in the market  Protection of Creditors  Protection of Asset Owners  Transparency of Market  Stability of System  Supervision over Money Laundering SUPERVISION REGULATION REPRESENTATION

7. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 7 Swiss Bankers Association / Liechtenstein Bankers Association Self Regulation has a long tradition in Switzerland and Liechtenstein Binding Codes of Conduct, where legislation leaves room or where it is in the industry’s interest to voluntarily set standards The FBC/FMA monitors the banks’ compliance with the codes of conduct Set of Recommendations and Guidelines, which are not monitored by FBC/FMA  Bankers Associations are important partners in the Regulatory Environment and to ensure stability of the financial market  Banks are taking responsibility

8. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 8 Basic Principles of Swiss / FL Banks  Making Business should not be undermined by the regulatory environment  Self-Regulation - Codes of Conduct - Guidelines  Independence of Respective Organisations/Institutions  Analysis  Legislation  Monitoring  Supervision  Separation of Power BUT: Business FIRST

9. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 9 The Principality of Liechtenstein  History  1719: Principality of Liechtenstein  1924: Swiss Franc becomes official currency  1978: Member of the Council of Europe  1990: Member of United Nations  1995: Member of European Economic Area  1995: Member of the World Trade Organisation (WTO)  Geography  Situated in the heart of Europe between Switzerland and Austria

10. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 10 Liechtenstein, a Financial Centre Favourable Environment (1)  High level of political, legal and economic continuity and stability  Conservative-liberal approach of the government  Liberal economic policies and lowest level of bureaucracy  AAA country rating from Moody's and Standard & Poor's  Close links with Switzerland  Open borders and economic co-operation  Customs and currency union  Swiss franc as legal tender

11. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 11 Liechtenstein, a Financial Centre Favourable Environment (2)  Highly efficient banking system / banking legislation  Stringent banking secrecy laws  Best-developed financial infrastructure  Well-educated personnel  Highest international "due diligence" standards (also according to the FATF)  Special corporate structures possible in Liechtenstein  Asset protection / management, shareholding and non-profit purposes  Support of international trade activities  Low taxes for holding and domiciliary companies  Family foundations are the most popular form

12. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 12 Liechtensteinische Landesbank AG  Longest established bank in Liechtenstein, founded in 1861  Transformed in 1993 from an institute under public law into an stockexchange-listed public company  Main shareholder is the Principality of Liechtenstein with 57.5 % of the share capital  State guarantee on savings deposits and the bank's own medium term notes (S&P rating AAA)  620 employees

13. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 13 LLB Group services Forming and administration of companies and corporate structures Mutual fund management / full range of services Wealth Management and family office LLB Group Group companies / participations LLB Trust Company Ltd. Jura Trust AG Group companies / participations swisspartners Investment Network AG MBPI A Group companies / participations LLB Investment Partners AG Global Fund Services AG LLB Fondsleitung AG Locations LLB (Switzerland) Ltd., Zurich Rep. Office Abu Dhabi Branch Office Lugano Cayman Islands International presence Universal Banking Services by LLB Vaduz

14. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 14 The LLB and its legal background  Own Legislation “Landesbank-Gesetz”, which describes the rights and duties, LLB has to take care of in the context of its economical responsibility  Advantages of a Partnership with the country of Liechtenstein:  Stability and Reliability of the major shareholder together with extensive shareholder capital  Quality standard (AAA S&P rating)  Ideal partner for Growth (NO restrictions in operative activities of LLB) and  LLB is part of free market and has no competitive advantages

15. Liechtensteinische Landesbank Aktiengesellschaft Experiences of European Banking, Rolf P. Frehner, LLB 01.06.2015, Seite: 15 Thank you for your attention