ABBL - The Luxembourg Bankers' Association

𝗛𝗼𝘄 𝗱𝗼 𝗴𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝘀𝗵𝗼𝗰𝗸𝘀 𝘁𝗿𝗮𝗻𝘀𝗹𝗮𝘁𝗲 𝗶𝗻𝘁𝗼 𝗯𝗮𝗻𝗸𝗶𝗻𝗴 𝗿𝗶𝘀𝗸?
The ECB’s 2026 thematic reverse stress test offers a new perspective.

🏦 𝟭𝟭𝟬 𝗱𝗶𝗿𝗲𝗰𝘁𝗹𝘆 𝘀𝘂𝗽𝗲𝗿𝘃𝗶𝘀𝗲𝗱 𝗲𝘂𝗿𝗼-𝗮𝗿𝗲𝗮 𝗯𝗮𝗻𝗸𝘀 took part in the exercise, which asked institutions to work backwards from a predefined capital impact and design geopolitical scenarios severe enough to produce it.

The scenarios considered ranged from 𝗺𝗶𝗹𝗶𝘁𝗮𝗿𝘆 𝗰𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝘀 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗹𝘆-𝗰𝗵𝗮𝗶𝗻 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝘀𝗮𝗻𝗰𝘁𝗶𝗼𝗻𝘀, 𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗶𝗻𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗰𝘆𝗯𝗲𝗿𝗮𝘁𝘁𝗮𝗰𝗸𝘀. Around a quarter of participating banks explicitly included a Middle East conflict, while others cited further escalation in Ukraine, China-US trade disruption and tensions in the Taiwan Strait.

The overall findings are broadly constructive:

🔹 Banks were generally able to produce 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝗮𝗹𝗹𝘆 𝗺𝗲𝗮𝗻𝗶𝗻𝗴𝗳𝘂𝗹 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼𝘀 𝗿𝗲𝗳𝗹𝗲𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲𝗶𝗿 𝗶𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀.
🔹 Regulatory liquidity positions generally remained 𝗮𝗯𝗼𝘃𝗲 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱𝘀.
🔹 𝗖𝘆𝗯𝗲𝗿 𝗿𝗶𝘀𝗸 𝗳𝗲𝗮𝘁𝘂𝗿𝗲𝗱 𝗽𝗿𝗼𝗺𝗶𝗻𝗲𝗻𝘁𝗹𝘆, with 86 banks identifying cyberattacks as a relevant non-financial risk.

The exercise also highlights areas where stress-testing frameworks can continue to evolve, including scenario granularity, solvency-liquidity interactions and the realism of mitigating actions under systemic stress.

For banks, the message is clear: geopolitical risk is becoming increasingly interconnected with financial and operational risk, making forward-looking scenario analysis an ever more important part of risk management.

👉 Read our summary of the ECB findings:
https://lnkd.in/ewvtm4u2

RiskManagement BankingSupervision GeopoliticalRisk StressTesting Banking ABBL

𝗟𝘂𝘅𝗲𝗺𝗯𝗼𝘂𝗿𝗴’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗰𝗲𝗻𝘁𝗿𝗲 𝗵𝗮𝘀 𝗹𝗼𝗻𝗴 𝗰𝗼𝗺𝗽𝗲𝘁𝗲𝗱 𝗼𝗻 𝗲𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲, 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗿𝗲𝗮𝗰𝗵 𝗮𝗻𝗱 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝘃𝗶𝘁𝘆. 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆, 𝗶𝘁 𝘄𝗶𝗹𝗹 𝗮𝗹𝘀𝗼 𝗰𝗼𝗺𝗽𝗲𝘁𝗲 𝗼𝗻 𝘁𝗮𝗹𝗲𝗻𝘁. 🎓

In a recent interview with RTL Lëtzebuerg, Patrick Augustin, Professor of Finance at McGill University and Director of the McGill Luxembourg Centre for Finance, highlights why education, research and closer cooperation with industry are becoming strategic for Luxembourg’s next chapter as a financial centre.

That ambition is already taking shape.

📘 McGill University has launched its Master of Management in Finance in Luxembourg, a part-time programme designed for working professionals and combining online learning with in-person sessions. The curriculum covers capital markets, asset management, private equity and sustainable finance, with a strong practical dimension.

But the initiative goes beyond a single degree.

🤝 The McGill Luxembourg Centre for Finance, created in partnership with the Ministry of Finance, Luxembourg, the ABBL and ALFI - Association of the Luxembourg Fund Industry, aims to strengthen the links between academic research, professional education and Luxembourg’s financial industry.

For the ABBL, this matters directly to competitiveness. Building deeper expertise, attracting specialised talent and creating stronger connections between academia and industry can help ensure that Luxembourg continues to develop the skills its financial ecosystem needs.

👉 Read more:
https://lnkd.in/ejzkG83e

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📢 𝗪𝗲 𝗮𝗿𝗲 𝗵𝗶𝗿𝗶𝗻𝗴: 𝗧𝗮𝘅 𝗔𝗱𝘃𝗶𝘀𝗲𝗿

Are you passionate about regulations and laws impacting the financial sector in the field of taxation? Would you like to deepen your expertise, stay at the heart of regulatory developments and contribute to high-impact projects?

The ABBL is looking for a 𝗧𝗮𝘅 𝗔𝗱𝘃𝗶𝘀𝗲𝗿 (𝗺/𝗳) to join its team in Luxembourg.

🔎 𝗬𝗼𝘂𝗿 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻

Working with a high degree of autonomy within a small team of subject-matter experts under the supervision of the Head of Legal, Tax and Compliance, you will contribute to key tax matters affecting the financial sector.

𝗬𝗼𝘂𝗿 𝘁𝗮𝘀𝗸𝘀

🔹 Analyse draft regulations and laws impacting the financial sector in the fields of taxation, including FASTER, CRS, DAC, corporate taxation and VAT
🔹 Prepare position papers and coordinate advocacy initiatives on tax matters impacting ABBL members
🔹 Provide assistance and information to ABBL members and prepare industry guidelines within your area of expertise
🔹 Coordinate and follow up on relevant ABBL workstreams
🔹 Organise topical conferences and participate in external events within your area of expertise
🔹 Engage with competent authorities to discuss relevant technical issues
🔹 Participate in external working groups at national and European levels

🎯 𝗬𝗼𝘂𝗿 𝗽𝗿𝗼𝗳𝗶𝗹𝗲

🔹 A Master’s degree in tax law is preferred
🔹 A minimum of 𝟱 𝘆𝗲𝗮𝗿𝘀 𝗼𝗳 𝗿𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲
🔹 Fluency in 𝗘𝗻𝗴𝗹𝗶𝘀𝗵 𝗮𝗻𝗱 𝗙𝗿𝗲𝗻𝗰𝗵, both written and spoken; German and/or Luxembourgish are considered an asset
🔹 Excellent analytical, critical thinking, synthesis and writing skills
🔹 Strong organisational skills, with a high sense of responsibility and the ability to work independently
🔹 The ability to work effectively within a team, supported by excellent interpersonal and communication skills

At the ABBL, you will work alongside industry experts in a 𝘀𝘁𝗶𝗺𝘂𝗹𝗮𝘁𝗶𝗻𝗴, 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝘃𝗲 𝗮𝗻𝗱 𝗺𝘂𝗹𝘁𝗶𝗰𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁, with exposure to a broad range of tax matters affecting the financial sector and the opportunity to engage with our members and expand your professional network.

📩 Candidates are invited to submit their CV and cover letter to apply4job@abbl.lu

🔗 𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗿𝗼𝗹𝗲 𝗮𝗻𝗱 𝗮𝗽𝗽𝗹𝘆 𝗵𝗲𝗿𝗲:
https://lnkd.in/eSWmPi2C

WeAreHiring Tax Taxation Banking FinancialServices Luxembourg ABBL Careers

🇪🇺 𝗧𝗼𝗸𝗲𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗺𝗼𝘃𝗶𝗻𝗴 𝗵𝗶𝗴𝗵𝗲𝗿 𝘂𝗽 𝗘𝘂𝗿𝗼𝗽𝗲’𝘀 𝗽𝗼𝗹𝗶𝗰𝘆 𝗮𝗴𝗲𝗻𝗱𝗮.

Recent reflections by Pierre Gramegna, Managing Director of the ESM - European Stability Mechanism (ESM), highlight how tokenisation is increasingly being considered as a strategic component of Europe’s future financial infrastructure.

For the ABBL, one development deserves particular attention: 𝘁𝗼𝗸𝗲𝗻𝗶𝘀𝗲𝗱 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀.

By combining trusted commercial bank money with the possibilities offered by distributed ledger technology (DLT), tokenised deposits could support faster settlement, fewer reconciliation processes, more efficient treasury operations and a more connected digital financial ecosystem.

For Luxembourg, the opportunity is significant. Its expertise in 𝗰𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗯𝗮𝗻𝗸𝗶𝗻𝗴, 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝘂𝗻𝗱𝘀, 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝘀𝗲𝗿𝘃𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 puts the financial centre in a strong position to contribute to Europe’s emerging tokenised ecosystem.

But moving from experimentation to scale will require more than technology alone:

🔹 Interoperability between platforms and market participants
🔹 Common standards and appropriate governance
🔹 Close cooperation between public and private actors
🔹 A framework that combines innovation, trust and competitiveness

Through its 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗚𝗿𝗼𝘂𝗽 𝗼𝗻 𝗧𝗼𝗸𝗲𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗗𝗟𝗧 and 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗖𝗹𝘂𝘀𝘁𝗲𝗿, the ABBL is helping foster the collaboration needed to support this transition.

As Ananda Kautz, 𝗠𝗲𝗺𝗯𝗲𝗿 𝗼𝗳 𝘁𝗵𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗕𝗼𝗮𝗿𝗱 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗕𝗕𝗟, highlights, tokenised deposits are ultimately about delivering concrete improvements for clients while helping Europe’s financial sector remain competitive.

👉 Read the full article:
https://lnkd.in/e8fUf-hR

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