Banking and Financial Services in Luxembourg
Banking and Financial Services in LuxembourgUpdated on Thursday 14th April 2016
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Luxembourg is a geographically small, centrally located, multilingual nation. Foreign investors within the EU can travel freely through Luxembourg ever since it has become a member state of the EU. Because of the small size of the state, foreigners can either choose to move to this country as residents or simply commute across the border; foreigners constitute almost half of Luxembourg's population.
As it enjoys a multilingual population, a stable political environment and favourable taxes, foreign investors often choose to start a business on its territory.
Financial services in Luxembourg
The financial services industry in this country is somehow young; its tax and regulatory systems ensure a good environment for the economy concerning financial services in response to shifts in international financial policies and markets.
Its regulatory framework and favourable taxes make the region a successful financial services center.
Luxembourg continues to offer attractive products to both national and foreign investors, providing in this way desired services for clients. This country is one of the most reputable places to operate financial business activities in and makes sure that the financial services area will be successful in the years to come.
Some of the most common financial services offered by firms in Luxembourg can be:
- - wealth management;
- - asset management services;
- - investment banking services.
Banking services in Luxembourg
All banks that have their basis in Luxembourg are universal banks, with authorisation to perform the full range of banking services. The law in Luxembourg allows to create banks issuing covered bonds; these type of banks have limited activity. Banks in this country are specialised in capital market activities and international loans, as well as in retail banking services (housing and consumer loans, credit cards, savings and deposit accounts etc).
A recent regulation allows creating payment establishments and electronic money issuers. A restriction on their activities is applied and so they can only offer payment services and creation of electronically stored capital.
Some of the banking services that can be provided in Luxembourg are as follows:
- • online banking and reporting;
- • margin trading facilities;
- • foreign exchange and tailored lending;
- • deposit accounts;
- • letters and guarantees of credit.
If you need help, our law firm in Luxembourg can provide you with information and assistance in financial and banking services matters, so feel confident to contact us.