(L-R) Helene Lange, Head of Business Coordination ABBL; Ryan Davis, PwC Luxembourg Banking Partner; Credit: PwC Luxembourg

On Tuesday 18 November 2025, PwC Luxembourg and the Luxembourg Bankers’ Association (ABBL) published a new positioning paper assessing Luxembourg’s growing role as one of Europe’s most dynamic corporate banking centres.

The report, entitled “Luxembourg: A Hub for Corporate Banking in the Heart of Europe”, provides an analysis of Luxembourg’s financial ecosystem, describing a sector characterised by stability, innovation and sustained growth.

According to the authors, Luxembourg has evolved over the past two decades from a small yet prosperous economy into a sophisticated, international hub for corporate banking. Supported by a triple-A credit rating, solid public finances and a multilingual talent pool, the Grand Duchy offers what the report describes as a “uniquely stable yet forward-looking environment” for global banking operations.

PwC Luxembourg Banking Partner Ryan Davis commented: “Having worked with corporate banks across different markets in Europe and beyond, I’ve seen how Luxembourg uniquely blends trust and innovation. Our report confirms that Luxembourg’s regulatory stability, strong governance and pro-business environment make it a leading destination for corporate banking in Europe.”

Key findings

The report identifies five factors underpinning Luxembourg’s attractiveness for corporate banks:

  •     Regulatory stability and governance: a transparent legal and supervisory framework offering predictability and investor confidence;
  •     Proximity to key decision-makers: close access to governmental and regulatory institutions, enabling day-to-day dialogue and operational agility;
  •     Local expertise and a deep financial ecosystem: a strong concentration of international banks, advisory firms and legal specialists capable of supporting complex transactions;
  •     Innovation and digital integration: a thriving fintech and regtech ecosystem, bolstered by initiatives such as the Luxembourg House of Financial Technology (LHoFT);
  •     Commitment to sustainable finance: with platforms such as the Luxembourg Green Exchange (LGX) and LuxFLAG, the country continues to drive Europe’s ESG agenda.

According to the report, corporate banking represents roughly 35% of total banking revenues in Luxembourg. In 2024, the net profits of credit institutions reached €7.2 billion, illustrating the strength and profitability of the sector.

Luxembourg hosts global institutions including J.P. Morgan, Deutsche Bank, Bank of China and Bank of America, alongside domestic players such as BCEE, BIL and Raiffeisen, reinforcing the country’s role as a crossroads for international finance.

Sustainability and innovation at the centre

The positioning paper highlights Luxembourg’s long-standing leadership in sustainable finance - from issuing the world’s first green bond to establishing the Luxembourg Sustainable Finance Initiative (LSFI). In parallel, the country’s fintech landscape, supported by robust cloud regulations and a national digital innovation strategy, is driving the adoption of AI, blockchain and regtech solutions across the banking sector.

ABBL Head of Business Coordination Hélène Lange stated: “This collective work is especially valuable because it clearly demonstrates why Luxembourg stands out as a leading centre in corporate banking, while giving bankers and their clients the opportunity to showcase the unique added value our financial ecosystem provides.”

Looking ahead, the report anticipates continued growth supported by the integration of European capital markets, the expansion of sustainable finance and accelerating digital transformation. The combination of regulatory prudence, technological readiness and strong international connectivity positions Luxembourg to remain a key pillar of corporate banking within the EU and beyond.

For full details, the report is available here.