The ECB has fined Banque Internationale à Luxembourg €3.255 million for failing to apply approved internal models, causing the bank to overstate its capital for three consecutive quarters between 2023 and 2024.
The European Parliament's economic affairs committee votes on the digital euro on 23 June 2026, advancing a project the EU casts as a way to cut its reliance on Visa, Mastercard and PayPal — with consequences Luxembourg's financial centre will feel directly.
At his first meeting as Federal Reserve chair, Kevin Warsh held US rates at 3.5%-3.75% and resisted President Trump's demand for cuts — a decision felt acutely in Luxembourg, the world's second-largest fund centre.
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.