Luxembourg's finance minister Gilles Roth met UK chancellor Rachel Reeves in London on a two-day financial mission, discussing cross-border investment and closer cooperation between the two financial centres — a relationship that channels much of the Grand Duchy's €6.6 trillion fund industry.
The European Central Bank is warning that European banks underestimate their exposure to private credit and has doubled the number of lenders under scrutiny. The funds at the heart of the concern are largely domiciled in Luxembourg.
The European Central Bank has expanded a probe into euro-area banks' exposure to private credit to more than 20 lenders, warning that the asset class is opaque and concentrated. The scrutiny lands close to home in Luxembourg, the EU's largest fund domicile and base for hundreds of billions of euros of private-debt vehicles.