Together towards another decade of resilience

Banking in Luxembourg 2024

Banking in Luxembourg
  • Report
  • June 24, 2024

Despite surging profits and a long tradition of resilience and robust governance, Luxembourg’s banking industry should brace for challenging times ahead due to crises in the non-financial sector.


Although not many banks in Luxembourg are directly supervised by the European Central Bank (ECB), the industry should look at the recently published Single Supervisory Mechanism (SSM) Supervisory Priorities for the years 2024-2026 as an opportunity to upgrade operations and risk management frameworks to ensure both resilience and sustainable growth in the challenging, rapidly changing geopolitical and macroeconomic environment.


Our report highlights our recommendations to the leadership of the Luxembourgish banking industry regarding the ECB’s latest priorities and with two areas not directly covered by the ECB: Tax- and Anti-Money Laundering (AML)-related matters.

Luxembourg’s banking sector has been a paragon of stability and sound, prudent governance since the emergence of the country’s first banks in the mid-19th century. For this report, we decided to take stock of the European Central Bank’s latest supervisory priorities and delve into tax and financial crime-related matters – two areas not directly under the ECB’s remit – to offer signposts for the leadership of the Grand Duchy’s banking sector to stay ahead of the curve in this increasingly fractured and crisis-prone environment.

Julie Batsch, Banking and Capital Markets Leader, PwC Luxembourg

increase in net profits in 2023 vs 2022 largely “due to very favourable interest margins and reversals of provisions.”


credit institutions established in Luxembourg at end of March 2024, with a total balance sheet of EUR 957,244 mn


Of the biggest banks in Luxembourg by balance sheet have CET1 and LCR ratios well above the minimums prescribed by Basel III

The 2024-2026 ECB Priorities

three priorities

C-Suites Roadmap to Navigating these Priorities

Discover more

Discover more

Discover more

Discover more

Discover more

Discover more

< Back

< Back
[+] Read More

Download the executive summary

Download the full report

Get more insights and practical recommendations!

Stay Connected: