|Financial Market Development|
|5.0 (max 7.0), 15th out of 138 countries|
|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).
Chart 1. Financial Market Development in Luxembourg. Source: WEF.
Soundness of banks is scored 6.1 bringing Luxembourg into the 9th place.
Chart 2. Soundness of Banks in Luxembourg. Source: WEF.
|Maximum Protected Amount|
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:
All these details about deposit guarantee scheme in Luxembourg are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Luxembourg, branches of non-EU banks, branches of Luxembourg banks abroad|
|Scheme Exemptions||branches of EU-banks (covered by their home countries)|
|Eligible Depositors||natural persons, small businesses with headquarters in EU|
|Covered Accounts||all cash deposits|
|Maximum Protected Amount||100,000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Luxembourg.
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)|
Local currency (Euro) deposit ceiling for Luxembourg is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Average Deposit Rate (Feb 2019, EUR)|
|0.04 % (Jan 2019: 0.23 %)|
Chart 3. Deposit Rates in Luxembourg. Source: ECB.
|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.
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 Banks||7||9||2||3||5||2|
|Number of Closed Banks||1||9||6||6||5||5|
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.
|UniCredit Bank AG Luxembourg Branch (new)||June 2018|
|BANCO SANTANDER (BRASIL) S.A., LUXEMBOURG BRANCH (new)||March 2018|
|China Everbright Bank Co. Ltd, Luxembourg Branch (new)||August 2017|
|China Everbright Bank (Europe) S.A. (new)||July 2017|
|RiverBank S.A. (new)||April 2017|
|The Royal Bank of Scotland International Limited, Luxembourg Branch (new)||March 2017|
|AS Expobank Luxembourg Branch (closed)||January 2017|
|Bank of Communications Co., Limited Luxembourg Branch (new)||December 2016|
|UBS EUROPE SE, Luxembourg Branch (new)||December 2016|
|Rakuten Europe Bank S.A. (new)||January 2016|
Table 3. The most recently opened banks in Luxembourg.
All the credit institutions operating in Luxembourg can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||45|
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 Origin||Number of Branches|