The aggregated balance sheet of Luxembourg banks decreased by 0.4% (to €946.6bn) between 30 November and 31 December 2023, according to official figures. However, Luxembourg banks’ collective balance sheet rose by 0.87% year-on-year, the Luxembourg Central Bank (BCL) on 16 February 2024.
“On the asset side this decrease is mainly due to the monthly decrease of loans to other banks and deposit-taking corporations. On the liability side, the decrease is explained by the decrease in deposits from other banks,” the BCL stated.
Net interbank lending shrank by 4.1% (to €214.5bn) at the end of December 2023.
Loans to resident non-bank customers declined by 1.1% month-on-month and by 3.1% on a year-on-year basis. Loans to non-financial corporations dropped by 5.8% (to €27.7bn), mortgage loans were down by 1.2% (to €41.2bn) and loans to other financial intermediaries--which includes investment funds--declined by 2.8% (to €35.4bn), year-on-year.
Read also
Luxembourg household deposits rose by 0.4% (to €45.5bn) and business deposits increased by 4.8% (to €24.1bn), between December 2022 and December 2023, while other financial intermediaries’ deposits decreased by 14.7% (to €177.6bn) and deposits by insurers and pension funds fell by 14.2% (to €11.1bn).
Reserve requirement
The BCL said its reserve requirement, the amount that Luxembourg banks have to collectively hold at the central bank, rose by €131m to €6.2bn for the 31 January 2024 to 12 March 2024 maintenance period.