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Luxembourg’s banking sector remains strong and attractive

Published on 07 October 2025

In recent interviews with Luxemburger Wort, Jerry Grbic, CEO of the ABBL, shared his insights on the current state and outlook of Luxembourg’s banking sector, a cornerstone of the national economy that continues to evolve and attract new players.

Summary

    A resilient and competitive sector

    Despite an unstable environment, Luxembourg’s financial centre, which accounts for roughly one-third of the country’s GDP, continues to attract international institutions. Several banks have recently expanded or relocated activities to the Grand Duchy, confirming its appeal as a European hub for finance and innovation.

    Luxembourg’s financial centre continues to attract new players — a clear sign of its resilience and enduring appeal.

    Jerry Grbic

    CEO, ABBL

    Diversification and responsibility

    Compared to other financial centres, Luxembourg’s banking landscape is highly diversified, covering retail, private, corporate and depositary banking as well as clearing and payment services. This breadth helps ensure stability and growth.

    Banks also carry a dual responsibility: protecting savers by maintaining prudent lending practices, while investing sustainably in innovation, cybersecurity and operational resilience. “Only a profitable bank can invest in solutions that benefit customers and the wider economy,” Grbic noted.

    The need for smart regulation

    While underlining the importance of strong regulatory frameworks, Grbic also highlighted the need for simplification and efficiency. “We are not in favour of complete deregulation,” he said, “but we want smart regulation — rules that protect customers and preserve competitiveness without creating unnecessary complexity.”

    As the financial centre continues to modernise, reducing administrative burdens and encouraging innovation will remain key priorities to ensure that Luxembourg stays at the forefront of European banking.

    Source: Interview with Luxemburger Wort (in French and German), translated and published in Luxembourg Times under the title
    Luxembourg banks continue to take on new customers despite ING woes (3 October 2025).