Banking in Luxembourg

At the end of this course, you will have an overview of the activities carried out within the banking sector, the developments they have undergone over time and the economic and financial rationale characterising the products and services offered by a banking institution. Furthermore, you will have acquired the general financial terminology used in the sector’s business activities.

• Introduction

  • Origins and development of banking institutions

  • The Luxembourg financial centre in numbers

• Fundamental components of the legal framework for banking in Luxembourg: Law on the financial sector, authorisation and the CSSF

• New framework for financial supervision: ESFS and ECB

• Harmonised framework for the oversight and management of financial crises: Banking Union

  • Single Supervisory Mechanism and Single Resolution Mechanism

  • European Deposit Insurance Scheme (EIDS) (FGDL in Luxembourg)

• Universal banks, specialist banks and mortgage banks Bank branches and subsidiaries

  • The banker as assessor and manager of risks

    • Topography and typology of the different risks encountered:

    • Financial risks

    • Commercial risks

    • Competitive positioning risks

    • Operating risks

  • Risks for universal banks and specialist banks: operational sphere vs. financial sphere Specific ALM and risk management responses

• Bank intermediation activities

  • Intermediation as the basis of a bank’s

  • Constituent elements

  • Intermediation ratio, trends and current developments

  • Funding, reinvestment of funds and interest margin

  • Bank intermediation products

• Bank intermediation activities

  • Description and contemporary developments of this phenomenon Constituent elements

  • Banks as designers, managers and sellers of a broad range of products and services

  • Disintermediation products

  • Disintermediation services

• Banks as managers of payment systems

• Specific features of a bank’s balance sheet and off-balance sheet structure

• Structural components and business lines

  • Product lines, business lines and clusters

• New actors and new trends: Banks vs. Financial Technology