Luxembourg: Financial Sector Assessment Program-Financial System Stability Assessment

June 7, 2024

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Format: Chicago

Luxembourg: Financial Sector Assessment Program-Financial System Stability Assessment, (USA: International Monetary Fund, 2024) accessed September 16, 2024

Summary

The assessment of Luxembourg’s large, interconnected, and complex financial system took place against heightened economic, financial, and geopolitical uncertainty. Investment funds have grown since the 2017 FSAP, while their connections to other funds, banks, nonbank financial intermediaries, and foreign entities have also increased. Domestic banks face risks from the ongoing downturn in credit and house price cycles, especially in the high-risk mortgage segment. Securities portfolios in large banks are mostly held-to-maturity and spread across euro area issuers. The banking sector maintains higher capital ratios than euro area peers, has low but rising nonperforming loans, and benefits from support to the economy from a AAA-rated sovereign.

Subject: Financial institutions, Financial Sector Assessment Program, Financial sector policy and analysis, International organization, Macroprudential policy, Monetary policy, Mutual funds, Stress testing

Keywords: Banking sector supervision, Coverage ratio, Financial Sector Assessment Program, FSAP mission, Global, Insurance liquidity analysis, Investment Funds sector, Macroprudential policy, Mutual funds, Stress test result, Stress testing

Publication Details

Pages:

72
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/157
Stock No:

1LUXEA2024003
ISBN:

9798400278204
ISSN:

1934-7685

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