The Grand Duchy is the leading centre of private banking in the euro area and the second most important centre worldwide for investment funds. The Grand Duchy's financial sector attracts private and institutional investors because of its political, economic and social stability, its modern legal and regulatory environment, and its international outlook. According to the latest figures published by Luxembourg's central bank and the ALFI (Association of the Luxembourg Fund Industry), financial activity in the Grand Duchy is tending to increase.
Positive results for credit institutions
According to provisional figures, Luxembourg's central bank notes that the sum total of credit institutions amounted to almost 782,992 million euros at 31 March 2017 compared with 771,265 million euros the previous month. Credit to non-banking resident customers increased by 6,119 million euros in 2016 - a rise of 8.3%. During the same period, deposits by customers in the non-banking sector increased by 14,043 million euros, and deposits by other financial intermediaries increased by 6.7%, i.e. 10,102 million euros.
Because of these good results, banks established in the Grand Duchy created 82 new jobs during the last quarter. This means that 26,144 people are currently employed at the 143 credit institutions on the official list held by Luxembourg's central bank.
Investment funds reach a historic high
At the end of February 2017, 3,860,317 billion euros of net assets were under management in investment funds in the Grand Duchy – a new record. This represents an increase of 2.47% compared with January 2017, and an increase of 13.68% over the last 12 months. There were four more funds listed than in the previous month. In all, 4,130 funds were administered in the Grand Duchy in February 2017.
(article written by the editorial team of the portal luxembourg.lu)