“The activity of the financial center has continued to develop for ten years,” underlines the Association of Banks and Bankers Luxembourg (ABBL). Our country remains well positioned even in relation to movements in banking concentrations. The President of the European Central Bank, Christine Lagarde, believes that cross-border mergers in the European Union (EU) are “desirable”, with the aim of strengthening their competitiveness, while the Italian UniCredit could buy the German Commerzbank.
“Cross-border mergers of banks that can compete on size, depth and range with other institutions around the world, including US and Chinese banks, are, in my view, desirable,” she explained. during a hearing at the European Parliament.
This trend would therefore not threaten the banking sector in Luxembourg, even if the number of banks has increased from 144 to 118 in ten years. The number of employees (26,285 in 2023) “has remained stable” over the last decade, argues the ABBL. Furthermore, the “vast majority” of banks established in Luxembourg are banks that are part of international groups.
As such, the Luxembourg financial center “remained attractive” for international banks. “This is mainly due to the political, economic and social stability of the Grand Duchy,” indicates the ABBL. But also to the unique ecosystem developed in Luxembourg. Indeed, this great capacity to manage complex property and multi-jurisdictional situations does not exist anywhere else.”
The Association adds that the resilience of the sector for the future will depend on its ability to overcome two challenges: that of attracting and retaining talent and that of “regulatory amplitude” which weighs on the competitiveness of Luxembourg banks. and European in general.
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