👉 The Liechtenstein fluid, also known as the Liechtenstein liquidity buffer, is a regulatory mechanism implemented by the Central Bank of Liechtenstein to ensure financial stability. It mandates that banks maintain a minimum level of highly liquid assets, typically equivalent to 2% of their total liabilities, to be held in a special account with the Central Bank. This buffer acts as a cushion against potential liquidity crises, enabling banks to meet sudden withdrawals or funding needs without resorting to less safe assets. By maintaining this reserve, Liechtenstein banks can better withstand market volatility and maintain confidence in the financial system, thus safeguarding the country's economic stability.
