Depositary Banking & Custody Services

The latest insights from the Luxembourg Depositary and Custodian Banking Industry

Published on 03 July 2024

The ABBL and KPMG Luxembourg survey highlights the strength of Luxembourg’s depositary and custodian banking sector, providing valuable insights into market trends, assets under custody and future growth.

Summary

We are pleased to unveil the results of the second survey conducted jointly by the Luxembourg Bankers’ Association (ABBL) and KPMG Luxembourg. This comprehensive study highlights the current state and future prospects of the depository and custodian banking sectors in Luxembourg. Through the collection and analysis of detailed data, the study provides valuable insights that are essential for industry leaders to stay ahead in an ever-changing financial landscape.

Luxembourg’s depositary and custodian banking industry is a cornerstone of the country’s financial sector, deeply linked to the success of the wealth management industry. The 2023 survey included responses from 50 banks, providing a robust data set that enhances our understanding of market dynamics. This collaborative effort between ABBL members highlights key trends, challenges and opportunities within these critical sectors.

Key findings of the survey

The survey revealed significant data that underlines the scale and scope of the sector:

Total assets under custody

By 2022, total assets under custody will reach €6.2 trillion, with the top five custodian banks holding a 68.5% market share.

Assets under custody

Total assets under custody amounted to €3.1 trillion in 2022, reflecting the immense responsibility and trust placed in these institutions.

Custodian Banks’s client types

The client base for custodian banks includes a variety of sectors, with credit institutions accounting for 44%, insurance compagnies for 14%, managed accounts for 12%, and pension funds for 12% of the assets under custody.

Shaping the future of the sector

By participating in this survey, ABBL members have played a crucial role in shaping the industry landscape. Their input is helping to identify areas of growth and potential, enabling informed decision-making that benefits the entire financial ecosystem. The survey also enabled members to share their experiences and express their views, ensuring that the future of the sector is shaped by those at its heart.

The ABBL is committed to supporting its members by providing them with the tools and information they need to navigate the complexities of the financial sector. The lessons learned from this survey will be instrumental in promoting policies and practices that foster stability and growth within the Luxembourg financial centre.

We extend our heartfelt thanks to all ABBL members for their active participation in this initiative. Your contributions are vital in building a stronger, more informed, and dynamic depositary and custodian banking industry in Luxembourg. Together, we can ensure that our financial sector continues to thrive and adapt to future challenges.

Discover the full survey report and explore the detailed findings that will drive the future of Luxembourg’s depositary and custodian banking industry. Join us in this journey towards excellence and innovation.