Luxembourg: Financial Sector Assessment Program—Technical Note on Selected Issues in Banking Supervision

IMF Staff Country Reports, June 24, 2024

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Canonical URL: Luxembourg: Financial Sector Assessment Program—Technical Note on Selected Issues in Banking Supervision

No material weaknesses were identified in the Commission de Surveillance du Secteur Financier (CSSF)’s supervisory processes in the areas of focus of the review—namely, LSI supervision of liquidity, interest rate risk in the banking book, operational risk, and related-party transactions.
The review specifically examines supervision by the CSSF of Less Significant Institutions.

The financial sector in Luxembourg has continued to grow since the 2017 FSAP and plays key domestic and global roles.
Luxembourg, as a founding Member State of the EU, the wider European Economic Area, and the Euro area, has incorporated European directives to regulate financial services.
Implementation details:
- International Financial Reporting Standards are implemented for prudential reports in compliance with EU rules.
- Local Generally Accepted Accounting Principles are used for preparing annual statutory accounts.
- The CSSF oversees the audit profession, approving statutory auditors and audit firms.