Credit institutions in Luxembourg saw their balance sheets reach €969.41bn in January 2025, with interbank lending rising 3.49% and resident non-bank deposits increasing 9.43% year-on-year, the Luxembourg Central Bank announced. Archive photo: Christophe Lemaire

Credit institutions in Luxembourg saw their balance sheets reach €969.41bn in January 2025, with interbank lending rising 3.49% and resident non-bank deposits increasing 9.43% year-on-year, the Luxembourg Central Bank announced. Archive photo: Christophe Lemaire

Luxembourg banks’ balance sheet grew to €969.41bn in January, rising 1.21% month-on-month and 2.84% year-on-year, driven by interbank loans, deposits and other financial intermediaries activity, the Luxembourg Central Bank reported on Tuesday 4 March 2025.

The aggregated balance sheet of Luxembourg’s banks reached €969.41bn on 31 January 2025, marking a 1.21% increase from €957.83bn at the end of December 2024, according to preliminary data from the Luxembourg Central Bank (BCL) on 4 March 2025. The BCL attributed this rise primarily to an increase in loans to other banks and deposit-taking corporations on the assets side, while deposits from other sectors drove the increase on the liabilities side. On an annual basis, the aggregated balance sheet grew by 2.84%, or €26.771bn.

Net interbank lending, defined as the difference between interbank loans and deposits, increased by €8.006bn or 3.49%, reaching €237.399bn by the end of January 2025.

Loans to resident non-bank customers increased by €2.134bn or 1.9% from December 2024 to January 2025. Over the past twelve months, these loans rose by €1.765bn or 1.56%.

The BCL reported that loans to non-financial corporations declined by €3.909bn or 14.06% on a yearly basis. Conversely, loans for house purchases increased by €201m or 0.49%, while loans to other financial intermediaries rose by €5.882bn or 16.05%.

On the liabilities side, deposits from the resident non-bank sector increased by €9.075bn or 3.14% between December 2024 and January 2025. Over the past twelve months, these deposits grew by €25.674bn or 9.43%.

Deposits from OFIs, which accounted for 65.7% of total resident non-bank deposits as of 31 January 2025 and comprised deposits from both monetary and non-monetary investment funds, increased by €16.706bn or 9.32% over the year. Household deposits rose by €1.73bn or 3.77%. NFC deposits increased by €3.522bn or 15.16%, while deposits from other sectors rose by €3.716bn or 15.49%.

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