Acquiring a bank

Acquiring a bank is complicated transaction. It involves all the processes of acquisition including receiving financial regulatory approvals.

    Inhabitants - 503,302 (July 2011)

    Language - Luxembourgish (national language), German (administrative language), French (administrative language).

    Currency - EURO (EUR)

    Religion - Roman Catholic 87%, other (includes Protestant, Jewish and Muslims) 13%.

    Politics - Politics of Luxembourg take place under the framework of a parliamentary, representative and democratic monarchy, wherein the Prime Minister of Luxembourg is the head of government, and of a multi-party system. Executive power is, under the constitution of 1868, as amended, exercised by the government, by the Grand Duke and the Council of Government (cabinet), which consists of the prime minister and several other ministers. Usually the prime minister is the leader of the political party or coalition of parties having the most seats in parliament. Legislative power is vested in both the government and parliament. The judiciary is independent of the executive and the legislature.

  • Major industries - banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminium, tourism.

    Banks (2010) - 147 banks; 226 branches; 26,255 employees; assets – EUR 769,26 billion; loans – EUR 191,17 billion; deposits – EUR 265,80

    Banking regulations - The relevant regulators in the case of banks are the CSSF and, to a lesser degree, the Luxembourg Central Bank (‘the BCL’). The CSSF was created by law on 21 December 1998, which estabilishing it up a public establishment in charge of assuming the prudential supervision of banks and professionals of the financial sector (including investment firms) and also as supervisor of the financial markets in Luxembourg. The CSSF has over the past year somewhat tightened its supervision of professionals in the financial sector and is intent on increasing its focus on quality-oriented supervision, by application of the new CRD framework and in particular the Pillar II principles, while at the same time maintaining the practical and principle-based approach in supervision which has always been the trademark of the Luxembourg regulator.

  • The law requires banks to have a share capital of at least €8.7 million, of which at least €6.2 million must be paid up. In accordance with Article 8(2) of the LFS, the own funds of a bank may not fall below such an amount of share capital.