## Luxembourg: Financial System Stability Assessment

_IMF Staff Country Reports, May 15, 2017_

## Source details

**Canonical URL:** [Luxembourg: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2017/05/15/luxembourg-financial-system-stability-assessment-44907)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/05/15/luxembourg-financial-system-stability-assessment-44907/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/05/15/luxembourg-financial-system-stability-assessment-44907/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/05/15/luxembourg-financial-system-stability-assessment-44907/bundle-manifest.json)

## Bibliographic details
- Published: May 15, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484300374.002

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### Executive summary
- This paper evaluates the stability of the financial system of Luxembourg.
- Financial soundness indicators for Luxembourg’s financial system, which plays a key role in the intermediation of financial capital, have remained relatively robust in recent years.
- Following rising asset prices and inflows, the investment fund industry has enjoyed strong growth in assets under management, while exposure to liquid assets has remained steady.
- An assessment of the financial system’s ability to withstand severe but plausible shocks suggests a good deal of resilience, albeit with some risks.
- Insurance stress test results indicate that strong initial levels of capital and low guaranteed product exposure offer insulation against market shocks.

### Key findings
- Financial soundness indicators remained relatively robust in recent years.
- Investment fund industry:
  - Experienced strong growth in assets under management following rising asset prices and inflows.
  - Exposure to liquid assets has remained steady.
- System-wide resilience:
  - Stress testing of the financial system under severe but plausible shocks indicates a good deal of resilience, although some risks persist.
- Insurance sector:
  - Stress test results point to insulation against market shocks due to strong initial levels of capital and low guaranteed product exposure.

### Scope and topics covered
- Subject classifications listed on the source:
  - Banking
  - Financial institutions
  - Financial regulation and supervision
  - Financial sector policy and analysis
  - Insurance companies
  - Liquidity requirements
  - Liquidity stress testing
  - Mutual funds
  - Stress testing
- Keywords provided on the source include:
  - CR, finance minister, financial system, foreign exchange, Global, Insurance companies, investment fund assets, investment funds, ISCR, liquid asset, Liquidity requirements, Liquidity stress testing, Luxembourg insurance industry, Luxembourg subsidiary, Luxembourg-domiciled fund, money market fund, Mutual funds, short-term debt, Stress testing

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17122.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17122.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/05/15/luxembourg-financial-system-stability-assessment-44907_