Banking & Financial Services Overview
Luxembourg’s banking sector plays a central role in the national economy, connecting international capital with local needs while supporting businesses, households and global investors. Built on stability, openness and expertise, it has developed into a leading European hub for banking and financial services.
Overview
Luxembourg’s banking sector is both highly international and deeply embedded in the local economy. It serves a wide range of clients, from individuals and SMEs to multinational corporations and institutional investors.
Its strength lies in the diversity of its activities, covering retail, private, corporate and institutional banking, as well as depositary, custody and payment services. This broad spectrum of expertise allows Luxembourg to act as a key gateway for financial flows within Europe and beyond.
Key figures
- €7.81 billion in mortgage lending (2024)
- €756bn assets under management in private banking (2024)
- 70% of corporate lending focused on international markets (2024)
- 95% of payments can be made without cash (2024)
A wide range of skills and services
Retail banking
Daily banking services for individual consumers and SMEs, including savings accounts, loans and payment solutions. A highly competitive market.
- 18,556 mortgage loans granted for properties located in Luxembourg (+18% compared to 2024)
- Total volume of €9.03 billion (+15.6% compared to 2024)
Source: Banque centrale du Luxembourg (BCL), 2025
Private banking
Supporting a wealthy clientele of Luxembourg or international families and entrepreneurs to protect, grow and transmit their assets.
- 42 banks active in private banking
- €756bn assets under management
- 90% of clients domiciled in Europe
Source: ABBL-KPMG-CSSF Private Banking Survey, 2024
Corporate & institutional banking
Targeting national and international corporates by offering services such as corporate loans, debt structuring, cash management and trade finance.
- 70% of lending focused on international markets
Source: ABBL-PwC-CSSF Corporate Banking Survey, 2024
Depositary & custodian banking
Bank services catering to the needs of the fund industry, supporting Luxembourg’s position as a leading investment fund centre.
- €7.54tn assets under deposit
- €3.95tn assets under custody
Source: ABBL-KPMG-CSSF Depositary & Custodian Banking Survey, 2024
E-money & payment institutions
Services supporting the needs of a digital economy, from online payments and cross-border transactions to real-time liquidity management and merchant solutions.
Luxembourg has established itself as a growing European hub for payment and electronic money institutions, reflecting the attractiveness of its international and regulatory environment.
As of 31/12/2025, Luxembourg hosts:
• 18 authorised Payment Institutions (PI)
• 13 Electronic Money Institutions (EMI)
highlighting the country’s growing role in the European payments landscape.
Source: CSSF, 2025
A broader financial ecosystem
Beyond banking, Luxembourg’s financial centre includes investment firms, PFSs, consulting firms, law firms and fintech companies, contributing to a diversified and interconnected ecosystem.
A sector in evolution
Luxembourg’s banking sector operates in a changing environment marked by geopolitical uncertainty, regulatory developments and evolving financial conditions.
At the same time, the sector continues to adapt to accelerating digital transformation, operational resilience requirements and increasing expectations related to competitiveness and innovation.
Banks are investing significantly in cybersecurity, artificial intelligence, digitalisation and operational resilience, while continuing to support households, businesses and international investors.
The sector remains resilient, while adapting to shifts in monetary policy, changes in client behaviour and increasing competition.
Discover the ABBL’s proposals to strengthen the competitiveness of the European banking sector.
A stable banking landscape
Luxembourg’s banking sector remains stable despite ongoing market consolidation.
The sector continues to benefit from a diversified and international ecosystem, combining domestic banking activities with global financial services expertise.
Key takeaways
- Overall number of banks remains stable
- Consolidation does not weaken the sector
- Luxembourg remains an attractive European banking hub
Employment trends
The sector benefits from a stable level of employment, while skill profiles continue to evolve alongside digital transformation and the growing importance of artificial intelligence and cybersecurity.
Luxembourg’s banking sector remains highly international and continues to rely on a diverse and qualified workforce.
Key takeaways
Employment remains stable, while skill profiles are evolving, reflecting the increasing importance of digitalisation and artificial intelligence.
Financial performance
Luxembourg’s banking sector maintained a strong level of activity in 2025, despite a more challenging operating environment.
While profits remain at a high level overall, the sector recorded a slight decrease following a record year, reflecting lower interest margins and rising operating and staff costs.
Key takeaways
- Profits remain at a high level
- Slight decrease after a record year
- Pressure on margins linked to interest rates
- Rising operating and staff costs
A major contributor to Luxembourg’s economy
The banking sector is a key pillar of Luxembourg’s economy.
- 43% of financial sector gross value added (€7.439bn)
- €236,400 GVA per employee
- €1.793bn contribution to tax revenues
Source: Luxembourg for Finance, State of the Financial Sector 2025
Discover the ABBL Annual Report 2025
Explore the key trends, priorities and strategic challenges shaping Luxembourg’s banking sector and financial centre.
