Luxembourg: Financial System Stability Assessment: Update
IMF Staff Country Reports, June 28, 2011
Source details
- Canonical URL
- Luxembourg: Financial System Stability Assessment: Update
Other formats
Bibliographic details
- Published: June 28, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455288656.002
Overview
- 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.
Key findings
- Large international financial center with pivotal economic and European market role.
- Significant vulnerabilities revealed by the crisis due to large cross-border exposures to foreign parent banks.
- Authorities provided large public support to systemically important financial institutions under stress.
- Deposit guarantee increased fivefold.
- Need to strengthen home-host supervisory collaboration and cross-border bank resolution frameworks.
- Financial stability assessment and stress tests are conducted.
Policy recommendations and priorities
- Strengthen home-host supervisory collaboration.
- Develop and deepen cross-border bank resolution frameworks.
- Continue conducting financial stability assessment and stress tests.
Subject coverage and keywords
- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Insurance companies, Mutual funds, Solvency, Stress testing
- Keywords: aggregate bank capital, bank assets, bank secrecy regime, banking sector, banking system, Commercial banks, CR, Europe, Global, Insurance companies, investment fund industry, investment funds, ISCR, Luxembourg-domiciled funds, Mutual funds, parent bank, parent banks of Luxembourg, Solvency, solvency ratio, Stress testing, subsidiaries in Luxembourg
Content in this bundle
- Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011