Luxembourg: Financial System Stability Assessment: Update

International Monetary Fund

No 2011/148, IMF Staff Country Reports from International Monetary Fund

Abstract: Luxembourg hosts a large international financial center that plays a pivotal role in its economy and in European financial markets. The crisis exposed significant vulnerabilities in Luxembourg’s financial system, owing to large cross-border exposures to foreign parent banks. The authorities proceeded with large public support to systemically important financial institutions under stress and with a fivefold increase in the deposit guarantee. Strengthening home-host supervisory collaboration and cross-border bank resolution frameworks will be of crucial importance for Luxembourg. Financial stability assessment and stress tests are also carried out.

Keywords: ISCR; CR; investment funds; parent bank; banking system; solvency ratio; investment fund industry; bank assets; banking sector; bank secrecy regime; aggregate bank capital; parent banks of Luxembourg; subsidiaries in Luxembourg; Luxembourg-domiciled funds; Mutual funds; Insurance companies; Commercial banks; Stress testing; Solvency; Global; Europe (search for similar items in EconPapers)
Pages: 69
Date: 2011-06-28
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