Close to 52,000 people work in Luxembourg’s financial sector, which includes banks, funds, and insurance companies. The majority of employees are working in banks. The financial sector is responsible for a third of the Grand Duchy’s GDP and 40% of government revenue.
Despite the pandemic and rising inflation, Luxembourg’s funds gained close to €400 billion last year, while banks saw income rise by 32%. ABBL officials explained that the measures put in place a the beginning of the pandemic were major contributors to the sector’s perseverance.
The number of banks in Luxembourg has decreased in recent years. Almost 20% of them are no longer profitable, which affects about 3,000 employees.
Looking ahead to future opportunities, the sector is currently prioritising digitalisation and sustainable finances. It is also expected that interest liabilities will increase in the near future.
The war in Ukraine was not yet taken into consideration in last year’s report. However, the conflict has already caused increased risks in the financial sector since the beginning of the Russian invasion.
