Banking in Luxembourg: Trends & Figures 2020

Banking in Luxembourg: Trends & Figures 2020

Located in the heart of Europe and home of 127 banking institutions from all over the world with a range of varied business models, Luxembourg has truly become an international financial centre. Whereas the majority of the banking institutions are from other European countries, Luxembourg has also proven a viable gateway to the European market first for banks from America and more recently for banks from China.

Our annual banking review takes an analytical view at this diversified banking landscape, aiming at identifying the major innovation trends within the Global and Luxembourg banking industry.

Luxembourg banking sector's evolution

Number of banks
Number of banks

With 127 authorised banks at year-end 2019, the number of banks has slightly decreased.

Countries of origin of banks established in Luxembourg

In terms of geographical representation in the Luxembourg financial centre, German banks still make up the largest group, followed by French banks and Chinese banks.

Countries of origin of banks established in Luxembourg
Balance sheet total (in EUR million)

 Balance sheet total (in EUR million)

In 2019, the balance sheet total increased by EUR 46.9 billion (+6.0%). 60% of banks saw their balance sheet grow, especially some banking groups that moved some of their activities from the UK to Luxembourg due to Brexit.

On the asset side, the increase was principally driven by loans and advances to customers, followed by loans and advances to credit institutions. 

On the liability side, amounts owed to customers continued to increase strongly, showing that the automated exchange of financial and fiscal information between EU member states did not negatively impact this important source of financing.

Find out more:

Adapt or Die

Driven by new digital competition, the rise of sustainable finance, omnichannel client expectations and new technologies, banks face a crucial moment: adapt or die! Many have begun to adapt to the new ecosystem and deliver superior client experiences, but in order to go further, banks must bring constant innovation to the forefront.

What are the world’s top banking groups doing to stay ahead?

By carefully analysing the public information from top players, we believe that we have been able to generate a clearer picture of the way in which leading banking groups are using innovation to stay ahead. Seven broad innovations categories emerged:

  • Customer experience
  • Capital markets and lending activities
  • AI and analytics
  • Payment solutions
  • Sustainable finance
  • Blockchain and crypto-assets
  • Non-traditional banking services

and for each we drilled down into the most important trends and developments.

Key takeaways

Key takeaways
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Contact us

Roxane Haas

Banking Industry Leader, PwC Luxembourg

Tel: +352 49 48 48 2451

Olivier Carré

Markets and Strategy Financial Services Leader, PwC Luxembourg

Tel: +352 49 48 48 4174

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