The Luxembourg government, represented by prime minister Xavier Bettel and finance minister Yuriko Backes, on Tuesday officially inaugurated Bank of America’s new branch in Luxembourg. The office was already opened on 10 May.
Speaking five days before the Grand Duchy’s national elections on Sunday, Bettel, of the liberal-democrat DP party, praised Bank of America for its choice. “I applaud your decision to open a branch in the Grand-Duchy,” he tweeted. Luxembourg “is the perfect place for your operations in the heart of Europe and has become a frontrunner and leader in green finance – an important topic for my country and for Bank of America.”
Welcome to 🇱🇺, @BofA_Business ! I applaud your decision to open a branch in the Grand-Duchy. 🇱🇺 is the perfect place for your operations in the heart of Europe and has become a frontrunner and leader in green finance – an important topic for my country and for Bank of America. pic.twitter.com/RdBgT0KWrV
— Xavier Bettel (@Xavier_Bettel) October 3, 2023
Bank of America, the second largest bank in the United States, is listed as fourth on the list of top fossil fuel financiers in the world, having provided 232 billion dollars between 2016 and 2021 to fossil fuel companies and projects, according to Greenportfolio.com.
Finance minister Yuriko Backes, of the same political affiliation as the prime minister, also welcomed Bank of America.
Very pleased to welcome the Bank of America to the 🇱🇺 financial centre ‼️@BofA_Business @gouv_lu @MinFinLux @LuxFinance @Xavier_Bettel @ABBLbanking https://t.co/yic6CuyV94
— Yuriko Backes (@Yuriko_Backes) October 3, 2023
When opening its Luxembourg branch in May, Bank of America said the launch means the bank can support clients – corporate, commercial and non-bank financial institutions – with setting up local bank accounts and provide in-country transaction banking products and services.
Serving non-bank financial institutions
As Luxembourg is the second largest investment fund centre in the world, after the United States, the bank said it “will deepen its global cash management services” to these non-bank financial institutions, which also includes the many investment funds domiciled here.
Fernando Vicario, CEO of Bank of America Europe DAC, said the branch marks a significant milestone for businesses in the region. “Many multi-national companies have chosen Luxembourg as a European hub for their activities and we are proud to support business opportunities and responsible growth in this important financial centre,” he said in the 10 May statement.
“The opening of the Luxembourg branch demonstrates our ongoing commitment to supporting clients in key countries where they have cash management requirements and providing strategic advice with building resilient enterprises,” said Matthew Davies, head of Global Transaction Services, Emea and Global co-head of Corporate Sales.
Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Its balance sheet held assets worth 3,123 billion dollars at the end of June.
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