Luxembourg: Financial Sector Assessment Program: Technical Note-Risk Analysis
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This Technical Note reviews the stability of Luxembourg’s financial system. The financial soundness indicators for Luxembourg’s financial system, which plays a key role in the intermediation of financial capital, have remained relatively robust in recent years. Household stress test results suggest that households’ solvency would be significantly affected by a drop in income and housing prices and a rise in unemployment. Bank liquidity displays broad resilience, but would be weakened should wholesale funding dry up or funding stress emerge in foreign currencies. Banks were found to be less vulnerable to direct contagion risk through bilateral exposure; however, most banks have considerable cross-border exposure.
Series:
Country Report No. 2017/261
Subject:
Banking Commercial banks Financial institutions Financial regulation and supervision Financial sector policy and analysis Liquidity requirements Liquidity stress testing Mutual funds Stress testing
English
Publication Date:
August 28, 2017
ISBN/ISSN:
9781484316832/1934-7685
Stock No:
1LUXEA2017010
Pages:
114
Please address any questions about this title to publications@imf.org