Luxembourg: Financial Sector Assessment Program: Technical Note-Managing Problem Banks and Systemic Banking Crises
IMF Staff Country Reports, August 28, 2017
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- Luxembourg: Financial Sector Assessment Program: Technical Note-Managing Problem Banks and Systemic Banking Crises
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Bibliographic details
- Published: August 28, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484316818.002
Scope and purpose
- Analyzes the bank failure mitigation and resolution regime, as well as arrangements for managing a financial crisis, in Luxembourg.
- Focus areas include bank resolution frameworks, crisis resolution, deposit insurance, bridge bank tool, and related supervisory and judicial-review arrangements.
Institutional landscape and recent changes
- Luxembourg is part of the euro area and the banking union.
- The European Central Bank (ECB) has exclusive authority to directly supervise significant institutions.
- The Commission for the Supervision of the Financial Sector (CSSF), under the oversight of the ECB, directly supervises less significant institutions.
Key findings
- The landscape for managing problem banks in Luxembourg has changed fundamentally in recent years due to membership in the euro area and the banking union.
- Supervisory responsibilities are split: ECB for significant institutions; CSSF for less significant institutions under ECB oversight.
- Potential conflicts of interest exist in the decision-making process related to supervisory and deposit insurance functions.
Policy recommendations
- The CSSF should increase staffing for resolution.
- The CSSF should pay attention to potential conflicts of interest in the decision-making process related to supervisory and deposit insurance functions.
Publication and metadata
- Pages: 47
- Volume: 2017
- DOI: https://doi.org/10.5089/9781484316818.002
- Issue: 259
- Series: Country Report No. 2017/259
- Stock No: 1LUXEA2017008
- ISBN: 9781484316818
- ISSN: 1934-7685
- Publication date: August 28, 2017
- Subject: Bank resolution, Bank resolution framework, Banking, Bridge bank, Crisis resolution, Deposit insurance, Financial crises
- Keywords: bank, Bank resolution, Bank resolution framework, BNP Paribas, Bridge bank, bridge bank tool, BU authorities, Commission de Surveillance du Secteur Financier, confidentiality regime, CR, Crisis resolution, Deposit insurance, EU resolution authority, Global, government, insolvency regime, ISCR, judicial review, judicial review regime, judicial review regime in Luxembourg, Luxemburg, national competent authority, organic law, SRB policy, terms and conditions
International Monetary Fund, Luxembourg: Financial Sector Assessment Program: Technical Note-Managing Problem Banks and Systemic Banking Crises, August 28, 2017.
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- Country Report