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Economy and Banking Sector of Luxembourg

Financial Market Development

Financial Market Development
5.0 (max 7.0), 15th out of 138 countries
Banks' Soundness
6.1 (max 7.0), 9th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Luxembourg is scored 5.0 out of maximum 7.0 and ranked 15th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.9 (30th place).

Financial Market Development in Luxembourg.

Chart 1. Financial Market Development in Luxembourg. Source: WEF.

Soundness of banks is scored 6.1 bringing Luxembourg into the 9th place.

Soundness of Banks in Luxembourg.

Chart 2. Soundness of Banks in Luxembourg. Source: WEF.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Luxembourg are summarised in Table 1.

Scheme Participantsall credit institutions operating in Luxembourg, branches of non-EU banks, branches of Luxembourg banks abroad
Scheme Exemptionsbranches of EU-banks (covered by their home countries)
Eligible Depositorsnatural persons, small businesses with headquarters in EU
Covered Accountsall cash deposits
Covered Currenciesall
Maximum Protected Amount100,000 EUR
Paid In CurrencyEUR

Table 1. Deposit guarantee scheme in Luxembourg.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Euro)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Luxembourg is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Feb 2019, EUR)
0.04 %  (Jan 2019: 0.23 %)
In February 2019, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.04% which was below the Euro Area average (0.32%).
Deposit Rates in Luxembourg.

Chart 3. Deposit Rates in Luxembourg. Source: ECB.

Banking Supervision

Banque centrale du Luxembourg

Banking Sector Structure

Number of Banks
Consolidated Assets (2017)
821.69 bln EUR  (-2.85%)
Recent Changes (2018)
new banks: 2, closed banks: 5

Currently there are 139 credit institutions operating in Luxembourg.

In 2017 consolidated banking assets in Luxembourg were 821.69 bln EUR. The consolidated banking assets' evolution is shown at Chart 4 below.

Consolidated banking assets in Luxembourg.

Chart 4. Consolidated banking assets in Luxembourg.

Recent structural changes (2013 - 2018) of the banking sector of Luxembourg are summarised in Table 2.

Number of Opened Banks792352
Number of Closed Banks196655

Table 2. Recent structural changes in the banking sector of Luxembourg.

The list of the most recently opened banks in Luxembourg is provided in Table 3.

All the credit institutions operating in Luxembourg can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks45
Central banks1

Table 4. Number of banks by category in Luxembourg.

There are 45 branches of foreign banks from 14 different countries in Luxembourg. Table 5 shows 10 countries having the biggest number of branches in Luxembourg.

Country of OriginNumber of Branches
 United Kingdom1

Table 5. Number of branches of foreign banks in Luxembourg grouped by country of origin.