LGT left Germany seven years ago, following a dispute with the local regulatory authority. Now though, the bank intends to return.
LBT, which is owned by the principal family of Liechtenstein, is eyeing up the German onshore banking business. Prince Max von und zu Liechtenstein, chief executive officer at the private bank, said Monday: «We intend to open an office in Munich with the approval of Bafin.»
Regulatory Veto
Bafin incidentally was the reason why the bank left Europe’s largest economy in 2011. At the time, LGT wanted to buy BHF-Bank – today the latter is known under the name of Oddo BHF – from Deutsche Bank. After the two sides had reached an agreement, Bafin got itself involved and stopped the proposed deal.
Bafin is said to have told LGT that Germany wasn’t inclined to have a German bank be taken over by a Liechtenstein-based institute given the discrepancies in opinion about banking secrecy and untaxed assets.
Opinions Change – Sooner or Later
Today, things have moved on and LGT intends to have another go. The German market remains an important one for Liechtenstein, a market where the private bank believes it can generate growth.
The last word hasn’t been said though. Prinz Max left the media speculating on Monday, saying only that the opening of the Munich office will come at some point – opinions don’t change that quickly in Germany either, he ventured.