Luxembourg has always looked with confidence beyond its borders and European borders in all areas. The country has thus become an ideal platform to raise capital internationally and attract international investments to Europe.
Stability, prosperity and internationality
Today Luxembourg is ranked among the leading financial centres in Europe. The country enjoys exemplary economic, social and fiscal stability, making it one of the rare countries in the world with an AAA rating from every major ratings agency. This stability is not only based on economic growth higher than the euro zone average, or the diversity of products on offer in its financial centre, but also on the internationality of the financial centre, which is one of its areas of excellence.
Connecting investors to Europe and Europe to the rest of the world
The global asset management industry has found a good home in Luxembourg. Luxembourg banks have significant capitalisation and play a vital role within their respective group, providing them with significant liquidity which is then made available to European countries and households in the form of loans.
A financial centre with global connectivity
The country has one of the key infrastructures of the European capital market, allowing Luxembourg to connect international investors to Europe and European investors to the rest of the world.
The financial centre helps the European finance industry to access international capital markets. With an investment fund distribution market covering over 70 countries worldwide, the Grand Duchy also plays a crucial role by attracting international investors to Europe. Luxembourg provides them with access to funds invested in shares, as well as government and corporate bonds issued in Europe.
It thus acts as a European hub for international clients and their families, by directing investments from the Private Equity and Risk Capital industry from Asia, the Middle East and North America into the European market.
A hub for financing the European economy
With its expertise in international finance, ranging from the distribution of funds to capital market services, Luxembourg's financial centre raises large-scale investments and capital in Europe, by listing these bonds on the Luxembourg stock exchange, thus helping to stimulate the entire European economy.
The Grand Duchy is also proud of its highly diversified international financial ecosystem which has enabled it to develop a high level of expertise in several fields such as:
The home of supranational institutions
Because of this, many supranational financial institutions have chosen Luxembourg as their European operational centre or have created their centre of excellence in fields such as investment funds, asset management, Private Equity, insurance and reinsurance here. They have been joined by FinTech companies which develop innovative solutions and serve their European clients from the Grand Duchy.
Luxembourg's financial centre is subject to regulation in line with all the European and international standards. The Luxembourg regulators, the Commission de surveillance du secteur financier (CSSF - Luxembourg Financial Sector Supervisory Commission), and the Commissariat aux assurances (CAA - Luxembourg Insurance Commission), the official supervisory body of the insurance sector, have taken advantage of the international environment to acquire established experience in the authorisation and regulation of financial institutions offering their services and products throughout Europe and beyond.