## Luxembourg: Financial System Stability Assessment: Update

_IMF Staff Country Reports, June 28, 2011_

## Source details

**Canonical URL:** [Luxembourg: Financial System Stability Assessment: Update](https://www.imf.org/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995/bundle-manifest.json)

## Bibliographic details
- Published: June 28, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455288656.002

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### 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

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## Content in this bundle

- **Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011**
  - [Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11148.pdf.md){rel="alternate" type="text/markdown"}
  - [Luxembourg: Financial System Stability Assessment—Update; IMF Country Report 11/148; April 26, 2011 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2011/_cr11148.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/luxembourg-financial-system-stability-assessment-update-24995_