Luxembourg: Financial Sector Assessment Program : Technical Note-Managing Problem Banks and Systemic Banking Crises.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2017/259

IMF Staff Country Reports

Language:

English

Subjects (All):

Banks and banking--Luxembourg.

Banks and banking.

Financial crises--Luxembourg.

Financial crises.

Deposit insurance--Luxembourg.

Deposit insurance.

Physical Description:

1 online resource (48 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2017.

Summary:

This Technical Note analyzes the bank failure mitigation and resolution regime, as well as arrangements for managing a financial crisis, in Luxembourg. The landscape for managing problem banks in Luxembourg has changed fundamentally in recent years. As part of the euro area, Luxembourg is now part of a banking union in which the European Central Bank (ECB) has exclusive authority to directly supervise significant institutions and the Commission for the Supervision of the Financial Sector (CSSF), under the oversight of the ECB, directly supervises less significant institutions. It is recommended that the CSSF increase staffing for resolution and pay attention to potential conflicts of interest in the decision-making process related to supervisory and deposit insurance functions.

Contents:

Cover

CONTENTS

Glossary

EXECUTIVE SUMMARY

INTRODUCTION

A. Scope

B. Banking Industry Landscape

C. Legal Framework

INSTITUTIONAL ARRANGEMENTS

A. European Institutions

B. Domestic Institutions

C. Summary of Recommendations

RECOVERY PLANNING AND EARLY INTERVENTION

A. Single Supervisory Mechanism

B. Recovery Planning

C. Early Intervention

D. Summary of Recommendations

RESOLUTION REGIME

A. The Single Resolution Mechanism

B. Cross-border Cooperation

C. Resolution Planning

D. Entry into Resolution

E. Resolution Tools and Implementation

F. Insolvency Regime

G. Summary of Recommendations

FINANCIAL SAFETY NETS AND FUNDING IN RESOLUTION

A. The Singe Resolution Fund

B. Deposit Insurance

C. Emergency Liquidity Assistance

D. Additional Resolution Funding Support

E. Summary of Recommendations

SYSTEMIC CRISIS MANAGEMENT

A. Overview

B. Summary of Recommendations

BOXES

1. Configuration of Resolution Colleges

2. Entry into Resolution Under the SRM

TABLES

1. Summary of Recommendations

2. Status of Key Luxembourg Banks

ANNEX

I. Implementation Status of Key 2011 FSAP Recommendations on Safety Net, Bank Resolution, and Crisis Management Framework.

Notes:

Includes bibliographical references.

Description based on publisher supplied metadata and other sources.

Description based on online resource; title from PDF title page (EBook Central, viewed July 8, 2025).

ISBN:

9781484317099

1484317092

9781484317112

1484317114

OCLC:

1006290043