Luxembourg: A Hub for Corporate Banking in the Heart of Europe

Publication
November 18, 2025

Luxembourg stands as a dynamic force at the core of Europe’s corporate banking sector, seamlessly blending a tradition of stability with cutting-edge innovation and a distinctly pro-business environment. Over the past two decades, the Grand Duchy has demonstrated an impressive trajectory of growth and economic prosperity, evolving into a sophisticated, international corporate banking hub with well-capitalised banks that are deeply integrated into global markets and which offer a full range of corporate banking services. Luxembourg’s corporate banking sector is quietly becoming one of Europe’s most strategic financial engines.

In this new publication, developed in collaboration with the ABBL, we explore how Luxembourg blends regulatory strength, ESG leadership, and digital transformation to support multinational corporates and financial institutions.

Strong financial fundamentals (at year end 2024)

€7.2bn

in net profits for credit institutions

€937bn

in total banking sector assets

244%

liquidity coverage ratio and 155% net stable funding ratio

CET1

ratios consistently above Basel III minimums

26,150

employees in the banking sector, with high productivity and multilingual capabilities

Five key enablers of Luxembourg’s corporate banking success

Luxembourg offers a predictable, investor-friendly legal and regulatory framework that inspires confidence. Its AAA-rated economy, proactive financial supervisor (CSSF), and alignment with EU standards create a secure environment for cross-border banking operations. The country’s legal system is responsive and creditor-friendly, making it ideal for complex financing structures and international transactions.

Banks in Luxembourg benefit from strong governance frameworks and cross-border regulatory cooperation. With average liquidity coverage ratios at 244% and average net stable funding ratios at 155%, the sector demonstrates resilience and discipline. These prudential strengths are especially critical for multinational firms managing complex portfolios across jurisdictions.

Luxembourg’s financial centre is home to a dense concentration of global banks, law firms, advisory firms, and service providers. This ecosystem supports sophisticated deal-making, corporate finance, and structuring. The multilingual, highly skilled workforce—47% of whom are cross-border professionals—adds to the country’s ability to serve international clients with agility and precision.

Luxembourg is rapidly becoming a regulated innovation lab for financial services. With over 220 fintech and regtech firms, and initiatives like LHoFT and the Sovereign Cloud, the country supports enterprise-grade digital transformation. Banks are integrating AI, blockchain, and tokenised assets into their operations, while shared platforms for KYC, ESG reporting, and compliance are driving efficiency at scale.

Luxembourg is a pioneer in sustainable finance, home to the Luxembourg Green Exchange (LGX) and LuxFLAG. The country’s public-private collaboration, strategic ESG frameworks, and alignment with EU sustainability mandates make it a natural base for green bonds, sustainability-linked lending, and ESG advisory. Banks are embedding ESG into their risk models, governance, and product development.

Why it matters

Whether you're a corporate banker, business leader, fintech innovator, or investor, this report offers a clear view of how Luxembourg is positioning itself as a future-ready hub for cross-border banking, sustainable finance, and digital transformation.

Luxembourg: A Hub for Corporate Banking in the Heart of Europe

Key Corporate Banking Contacts

Ryan DAVIS - Advisory Partner, Risk & Compliance Advisory Services, PwC Luxembourg
Elena KAZMINA - Director, PwC Luxembourg

Hélène LANGE - Head of Business Coordination, ABBL
Anda ASAFTEI - Adviser - Banking and Business Intelligence, ABBL

Contact us

Ryan Davis

Advisory Partner, Risk & Compliance Advisory Services, PwC Luxembourg

Tel: +352 621 333 580

Elena Kazmina

Director, PwC Luxembourg

Tel: +352 49 48 48 3620

© 2018 - 2025 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.