Luxembourg banks have confirmed their reliability

In the first half of 2024, five Luxembourg banks are subject to external MREL solutions and six operate under internal requirements. Both groups show full regulatory compliance, indicating a conservative approach to risk management.

MREL requirements as a share of total risk (TREA) for Luxembourg banks are in line with the European average (28.5%), confirming their financial strength. In contrast to countries with systemically important banks, such as Germany and France, Luxembourg maintains a lower proportion of domestic MREL, reflecting its narrower banking profile.

CET1 and AT1 capital and senior debt with subordinated liabilities form the basis of compliance. This balance sheet allows banks to remain flexible and allocate resources efficiently.

Luxembourg demonstrates effective implementation of crisis resolution strategies. Compared to Germany and Italy, where the concentration of large players is higher, the country focuses on the stability of its local banks.