{
  "title": "Luxembourg: Financial System Stability Assessment: Update",
  "publication": "IMF Staff Country Reports, June 28, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Luxembourg hosts a large international financial center that plays a pivotal role in its economy and in European financial markets.\n- The crisis exposed significant vulnerabilities in Luxembourg’s financial system, owing to large cross-border exposures to foreign parent banks.\n- The authorities proceeded with large public support to systemically important financial institutions under stress and with a fivefold increase in the deposit guarantee.\n- Strengthening home-host supervisory collaboration and cross-border bank resolution frameworks will be of crucial importance for Luxembourg.\n- Financial stability assessment and stress tests are also carried out."
    },
    {
      "heading": "Key findings",
      "content": "- Large international financial center with pivotal economic and European market role.\n- Significant vulnerabilities revealed by the crisis due to large cross-border exposures to foreign parent banks.\n- Authorities provided large public support to systemically important financial institutions under stress.\n- Deposit guarantee increased fivefold.\n- Need to strengthen home-host supervisory collaboration and cross-border bank resolution frameworks.\n- Financial stability assessment and stress tests are conducted."
    },
    {
      "heading": "Policy recommendations and priorities",
      "content": "- Strengthen home-host supervisory collaboration.\n- Develop and deepen cross-border bank resolution frameworks.\n- Continue conducting financial stability assessment and stress tests."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Insurance companies, Mutual funds, Solvency, Stress testing\n- 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\n\n---\n\n Content in this bundle\n\n- Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011\n  - Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: June 28, 2011",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781455288656.002",
    "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.",
    "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.",
    "Strengthen home-host supervisory collaboration.",
    "Develop and deepen cross-border bank resolution frameworks.",
    "Continue conducting financial stability assessment and stress tests.",
    "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",
    "**Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011**"
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