Luxembourg provides an operational hub for many international financial institutions. Cross-border activities such as private and corporate banking, fund administration and custody, wealth management and treasury services, are run fluidly and effectively from the Grand Duchy.
Luxembourg has been able to build a unique ecosystem for the banking industry, which knits together various service providers including investment services, FinTechs, family offices, wealth planning, real estate management and philanthropy; as well as third-party management companies, international listing and post-trade services – all this with the infrastructure and regulatory expertise needed for the success of the industry.
"We are living in an age of ever increasing transparency. Investors increasingly focus on the expertise, on the available tools, on the legal and regulatory environments, on the competence of the authorities, and on the fact that the specialised service providers are here.”
For non-EU banking groups Luxembourg is a key gateway to the EU. Institutions from the US, Canada, Switzerland, Latin America and Asia, benefit from a passport for their products and services, providing access to the EU Single Market.
Following their example FinTech newcomers such as PayPal and Rakuten have chosen to set up their pan-European banks in Luxembourg.
Average solvency ratio of Luxembourg banks
BCL (Q4 2023)
Tier 1
capital ratio
BCL (Q4 2023)
Private banking & wealth management
Luxembourg’s expertise in cross-border financial services gives it an edge as an EU-onshore base for international private banking.
Luxembourg offers a one-stop shop for private banking and global wealth management, encompassing all of a client’s assets and business interests across multiple jurisdictions. The financial centre draws on specialists from the entire spectrum, developing bespoke solutions to suit every requirement, including:
- Investment advice
- Asset management
- Wealth planning services
- Real estate management
- Succession planning
- Family office services
- Philanthropy
increase in AuM since 2008
ABBL (2020)
billion AuM in private banking
ABBL (2022)
of clients’ assets originate from European countries
ABBL (2022)
Corporate Finance
Having played an instrumental role in the creation of the Eurodollar markets in the 1960s, Luxembourg’s banks have long-standing expertise in serving corporate clients, notably in the provision of international loans (bilateral and syndicated) and treasury services.
Many banks offer corporate banking services, tailored to the specific needs of their international clientele. These, include financial institutions, real estate developers and investors, as well as professional intermediaries and non-finance corporations.
The international focus of Luxembourg’s financial centre has also convinced many companies such as SES, Ferrero, Guardian, or GoodYear to establish their European or global headquarters in the Grand Duchy.
- Over 40 banks in Luxembourg offer commercial and corporate banking services.
- Courts and lawyers can deal with contracts governed by different legal systems, including common law.
Depositary banking
Depositaries are the bedrock of Luxembourg’s world-leading cross-border investment fund industry.
Luxembourg’s banks act as global custodians for their own groups and their institutional clients around the world. They provide the full spectrum of fund services:
- Risk management
- Supervision of fund transactions
- Shareholder services
- Portfolio clearance
- Order processing
- Fund distribution
Depositary banks are based in Luxembourg
CSSF
