Banking in Luxembourg 2019

Live Long and prosper

The Luxembourg financial centre has established its reputation as an international banking place since the 1960s and has been able to remain at the top among all financial centres across the world thanks to its resilience and ability to rapidly comply with new regulations.

Luxembourg, a competitive financial centre

Luxembourg’s financial services centre is unique. With its exceptional range of services, world-class financial infrastructure and expertise, the country’s banking industry is competitive.

1. Located at the crossroads of Europe

4. Expertise in managing cross-border funds distribution

2. An international and productive workforce

5. Favourable taxation and regulatory frameworks

3. Healthy public finances and a stable political environment

6. A state-of-the art ICT infrastructure

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Luxembourg, a diversified and evolving environment

With its unparalleled range of services, financial infrastructure and expertise, Luxembourg is a financial global hub. Despite a major transformation wave hitting global financial markets combined with an increasingly complex regulatory context, the local financial sector is still resilient, competitive and growing.

Top 5 country segments in the Luxembourgish Banking environment 

Business areas of Luxembourg banks

The transformation of the Banking industry – new challenges and opportunities ahead

A variety of forces have put tremendous pressure on the financial services industry in recent years, leaving many institutions with unsustainable cost-income ratios. And several of these challenging trends - from new regulatory mandates to augmented capital requirements and aggressive fintech competitors - are strengthening. 

Setting up a credit institution in Luxembourg

Banking activity in Luxembourg can either take the form of a branch or of a legal entity in the country. The shareholders of the legal entity can be institutional or private investors. Several foreign credit institutions operate in Luxembourg as a branch or a subsidiary.

Regulatory provisions

The financial sector becomes increasingly regulated by European regulations and directives, in addition to national laws. Credit institutions need to comply with many requirements.

Read more on the main regulations impacting the Banking industry

Payment Services Directive 2

The revised Payment Services Directive (PSD2) entered into force in Europe in January 2018. By law, banks have to make customer data available to third-parties in a secure manner. Apart from new compliance challenges to be addressed, banks will also need to reflect on their future business strategy. How do they organise themselves and operate in a world of “open banking”?

Contact us

Roxane Haas

Partner, PwC Luxembourg

Tel: +352 49 48 48 2451

Rima Adas

Financial Services Leader

Tel: +352 49 48 48 2101

François Génaux

Partner, PwC Luxembourg

Tel: +352 49 48 48 4175

Olivier Carré

Markets and Strategy Financial Services Leader, PwC Luxembourg

Tel: +352 49 48 48 4174

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