‘Reputation risks may lead to fewer ESG products’

Fears in the financial sector that the reputation of institutions - banks as well as fund managers - might suffer as an indirect consequence of stringent sustainable finance regulations might deter firms from developing new ESG products or could make them reluctant to finance companies that claim to be green or sustainable.

Luxembourg banks brace for economic downturn

Grand Duchy banks are taking action to prepare for an economic downturn, according to bank sector association ABBL

At its annual general meeting on Thursday, the organisation noted that rising interest rates and geopolitical uncertainty have caused households and companies to become reluctant investors. Banks began setting aside more provisions last year in order to cover increased risk of credit defaults - a move already reflected in 2022 figures with an increase of over 400%. 

Luxembourg aspires to leadership in Europe’s crypto market

Luxembourg is leading the way in Europe when it comes to crypto and blockchain technology. With MiCA, a new set of regulations from the European Parliament, Luxembourg’s early bet on cryptocurrency has been validated. We spoke with Nasir Zubairi, CEO of LHoFT - Luxembourg House of Financial Technology, who sees this as an opportunity for cryptocurrencies and crypto assets to enter mainstream markets within EU countries, and heard from banking association ABBL.

Financial sector staff face increased stress - union

Luxembourg’s banks, one of the biggest employers in Luxembourg’s financial sector, are engaging in staff management practices that leave many of their staff dissatisfied, especially in the area of pay, according to a representative of a union representing financial sector employees who contrasted the banks’ record with what she considered a better approach from the insurance industry.

Luxembourg to elucidate public on ESG finance

Luxembourg’s leading financial sector associations, together with the supervisory authorities and the government, are about to launch a public campaign that seeks to elucidate the general public in the grand duchy on sustainable finance. 

In particular, the campaign aims to make clear that sustainable investing is more than just environmental ‘green finance’ and that ESG investing also relates to social issues and the governance of companies.