PwC has announced the release of a new “Banking in Luxembourg” report under the sub-heading of “Together towards another decade of resilience” highlighting not only the achievements of the past 10 years but looking to future goals and challenges for Luxembourg banking sector, which employs more than 26,000 employees in the jurisdiction.
The report highlights recommendations to the leadership of the Luxembourgish banking industry (C-Suite and Board Members) regarding the ECB’s latest priorities and with two areas not directly covered by the ECB: Tax- and Anti-Money Laundering (AML)-related matters.
The European Union’s banking sector has demonstrated “remarkable resilience” in the face of recent geopolitical and economic turbulence, including the banking crisis of early 2023, the report states. This resilience owes much to the establishment of the EU Banking Union ten years ago, which has reinforced the stability and supervision of banks across Europe. Luxembourg’s banking sector stands out for its adherence to regulatory frameworks and its robust governance practices.
Julie Batsch, PwC Luxembourg Partner, Banking and Capital Markets Leader stated: “Luxembourg’s banking sector has been a paragon of stability and sound, prudent governance since the emergence of the country’s first banks in the mid-19th century.
“For this report, we decided to take stock of the European Central Bank’s latest supervisory priorities and delve into tax and financial crime-related matters – two areas not directly under the ECB’s remit – to offer signposts for the leadership of the Grand Duchy’s banking sector to stay ahead of the curve in this increasingly fractured and crisis-prone environment”.
Björn Ebert, PwC Luxembourg Partner, Financial Services Leader said: “Luxembourg’s banking sector has demonstrated overall stability over the past decades, however recent market challenges present escalating difficulties to maintaining its resilience. Our comprehensive report highlights the European Central Bank’s latest supervisory priorities and addresses current topics of the banking market, providing essential guidance for leaders in Luxembourg’s banking sector amidst today’s intricate landscape.
“Clearly, GenAI is poised to play a pivotal role in the sector’s future, elevating efficiency, accuracy, and customer service standards”.
Download the executive summary and the PwC Luxembourg “Banking in Luxembourg” full report here.
