ABBL Annual Report 2025: resilience, competitiveness and collective action
Luxembourg’s banking sector remains resilient and internationally attractive, despite a more demanding economic and regulatory environment. The ABBL Annual Report 2025 explores how competitiveness, attractiveness and collective resilience are becoming increasingly interconnected in shaping the future of Luxembourg’s financial centre.
Luxembourg’s prosperity rests on a strong and resilient economy, at the heart of which stands its financial centre.
As outlined in this year’s report, the international framework that has long supported stability is under increasing pressure. Predictability is no longer the norm, and uncertainty is becoming a structural feature of the global environment.
In such a context, confidence remains essential. It underpins investment, growth and financial stability, and depends on a framework that is both robust and adaptable.
A strong financial centre requires a strong collective voice
The ABBL represents a diverse ecosystem of banks and financial service providers, reflecting the international nature of Luxembourg’s financial centre.
This diversity is a strength. But it requires coordination and representation.
The ABBL provides a common platform through which members can engage with policymakers, contribute to regulatory debates and address shared challenges. It ensures that the sector can speak with one voice when it matters.
Attractiveness remains a strategic priority
Luxembourg’s financial centre continues to attract international banking institutions and specialised financial players, confirming the country’s strong international positioning.
At the same time, maintaining this attractiveness requires continued efforts on key structural issues such as the ability to attract talent, access to housing, a clear regulatory environment, efficient infrastructure and economic stability, as well as the competitive conditions offered to companies.
As highlighted in the report, the strength of Luxembourg’s financial centre increasingly depends on the country’s broader economic environment and its ability to remain an attractive place for companies and professionals to invest, grow and innovate.
Competitiveness and smarter regulation
European banks remain resilient and capable of financing households, businesses and strategic investments. However, increasing regulatory complexity, fragmentation and reporting obligations continue to weigh on competitiveness and innovation.
The report highlights the importance of a more proportionate, coherent and innovation-friendly framework capable of supporting growth while preserving financial stability.
When banks are constrained unnecessarily, the real economy is constrained.
Yves Stein
Chairman of the ABBL
Resilience in a changing environment
Resilience is a central theme of the report.
It extends beyond financial strength to include operational resilience, digital transformation and the ability to respond to geopolitical developments. Cybersecurity, innovation and new technologies continue to reshape the sector.
The ABBL supports its members through coordination initiatives, structured dialogue with authorities and strategic projects, including the Innovation Cluster.
Results remain solid but pressures are increasing
While banking profitability remained at a high level overall in 2025, the report highlights growing pressure on margins, rising operational costs and increasing investments linked to compliance, cybersecurity and digital transformation.
The sector is entering a more demanding phase requiring continued adaptation, efficiency and long-term strategic investment.
The role of the ABBL is to ensure that this resilience is collective, structured and forward-looking.
Jerry Grbic
CEO, ABBL
At a glance
The ABBL’s activities in 2025 reflect both the scale of engagement across the sector and the strength of its collective dynamics:
- 267 corporate members
- 3,000 experts contributing to ABBL activities
- 50 events organised with more than 5,000 participants
- 22 opinion papers on EU and national consultations
- 21 new members joined in 2025
- 16.9K followers on LinkedIn
These figures highlight the ABBL’s role as a platform for coordination, expertise and influence within Luxembourg’s financial ecosystem.
The banking sector at the core of Luxembourg’s economy
Beyond the ABBL’s own activities, Luxembourg’s banking sector continues to support households, businesses and international investors while contributing significantly to employment, investment and economic growth.
Discover key figures and insights on Luxembourg’s banking and financial services sector.
Our priorities in action
Promoting smarter regulation
The ABBL contributed actively to European and national discussions, advocating for a more coherent and proportionate regulatory framework, supported by its proposals for smarter financial regulation.
Strengthening operational and digital resilience
Through guidance, coordination and dialogue with supervisors, the ABBL supported members in implementing key frameworks such as DORA, while advancing work on cybersecurity and innovation.
Supporting the sustainable transition
The Association continued to promote a framework that enables banks to effectively finance the transition, while ensuring clarity and usability of ESG requirements.
Investing in talent and competitiveness
Talent remains a key driver of long-term resilience. The ABBL supports initiatives related to training, professional development and social dialogue to strengthen the sector’s attractiveness.
Looking ahead
The report highlights a changing environment in which competitiveness, attractiveness and resilience are becoming increasingly interconnected.
In a context shaped by geopolitical uncertainty, digital transformation and rising operational pressures, maintaining Luxembourg’s position as a leading financial centre will require continued coordination between financial institutions, public authorities and the wider ecosystem.
The ABBL remains committed to supporting this collective effort through advocacy, expertise and strategic initiatives.