ABBL - The Luxembourg Bankers' Association

🇱🇺 A targeted legal reform could strengthen Luxembourg’s lending toolkit.

Bill of Law 8813, submitted to Parliament on 30 July, would introduce greater legal protection for funded sub-participation agreements.

The issue is technical. Its implications are broader.

By providing greater certainty for participants, the proposed framework can make it easier for lenders to share risk, manage capital efficiently and preserve their capacity to finance the economy.

🔹 Relevant assets would be legally segregated from the lender’s general estate
🔹 Participants would benefit from greater protection in the event of lender insolvency
🔹 Lenders could continue using sub-participations as an effective risk-sharing tool
🔹 The reform could reinforce Luxembourg’s attractiveness for international financing transactions

The proposal also illustrates the value of constructive public-private dialogue. 𝗧𝗵𝗲 𝗔𝗕𝗕𝗟, 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 𝘄𝗶𝘁𝗵 𝗶𝘁𝘀 𝗺𝗲𝗺𝗯𝗲𝗿𝘀, 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 𝘁𝗼 𝗱𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻𝘀 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗠𝗶𝗻𝗶𝘀𝘁𝗿𝘆 𝗼𝗳 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝘁𝗵𝗮𝘁 𝗵𝗲𝗹𝗽𝗲𝗱 𝗯𝗿𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝗹𝗲𝗴𝗶𝘀𝗹𝗮𝘁𝗶𝘃𝗲 𝗽𝗿𝗼𝗽𝗼𝘀𝗮𝗹 𝗳𝗼𝗿𝘄𝗮𝗿𝗱.

As Jonathan Hug, Head of Legal, Tax and Compliance at the ABBL, puts it:
“𝘉𝘺 𝘢𝘥𝘥𝘳𝘦𝘴𝘴𝘪𝘯𝘨 𝘢 𝘤𝘰𝘯𝘤𝘳𝘦𝘵𝘦 𝘭𝘦𝘨𝘢𝘭 𝘶𝘯𝘤𝘦𝘳𝘵𝘢𝘪𝘯𝘵𝘺 𝘪𝘥𝘦𝘯𝘵𝘪𝘧𝘪𝘦𝘥 𝘣𝘺 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵, 𝘓𝘶𝘹𝘦𝘮𝘣𝘰𝘶𝘳𝘨 𝘤𝘢𝘯 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩𝘦𝘯 𝘣𝘰𝘵𝘩 𝘵𝘩𝘦 𝘱𝘳𝘰𝘵𝘦𝘤𝘵𝘪𝘰𝘯 𝘰𝘧 𝘱𝘢𝘳𝘵𝘪𝘤𝘪𝘱𝘢𝘯𝘵𝘴 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘰𝘧 𝘭𝘦𝘯𝘥𝘦𝘳𝘴 𝘵𝘰 𝘮𝘢𝘯𝘢𝘨𝘦 𝘳𝘪𝘴𝘬 𝘦𝘧𝘧𝘪𝘤𝘪𝘦𝘯𝘵𝘭𝘺.”

👉 𝗥𝗲𝗮𝗱 𝗼𝘂𝗿 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘄𝗵𝗮𝘁 𝗕𝗶𝗹𝗹 𝟴𝟴𝟭𝟯 𝘄𝗼𝘂𝗹𝗱 𝗰𝗵𝗮𝗻𝗴𝗲 𝗮𝗻𝗱 𝘄𝗵𝘆 𝗶𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀 𝗳𝗼𝗿 𝗟𝘂𝘅𝗲𝗺𝗯𝗼𝘂𝗿𝗴’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺:
https://lnkd.in/eddqt\_zT

Luxembourg Banking FinancialServices Lending Regulation Competitiveness

🇱🇺 A targeted legal reform could strengthen Luxembourg’s lending toolkit.

Bill of Law 8813, submitted to Parliament on 30 July, would introduce greater legal protection for funded sub-participation agreements.
The issue is technical. Its implications are broader.
By providing greater certainty for participants, the proposed framework can make it easier for lenders to share risk, manage capital efficiently and preserve their capacity to finance the economy.
🔹 Relevant assets would be legally segregated from the lender’s general estate
🔹 Participants would benefit from greater protection in the event of lender insolvency
🔹 Lenders could continue using sub-participations as an effective risk-sharing tool
🔹 The reform could reinforce Luxembourg’s attractiveness for international financing transactions
The proposal also illustrates the value of constructive public-private dialogue. The ABBL, together with its members, contributed to discussions with the Ministry of Finance that helped bring this legislative proposal forward.
As Jonathan Hug, Head of Legal, Tax and Compliance at the ABBL, puts it:
“By addressing a concrete legal uncertainty identified by the market, Luxembourg can strengthen both the protection of participants and the ability of lenders to manage risk efficiently.”
👉 Read our article to understand what Bill 8813 would change and why it matters for Luxembourg’s financing ecosystem:
https://lnkd.in/eddqt\_zT
Luxembourg Banking FinancialServices Lending Regulation Competitiveness

𝟯.𝟮𝟬%. 𝗧𝗵𝗲 𝗹𝗼𝘄𝗲𝘀𝘁 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗯𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 𝗰𝗼𝘀𝘁 𝗳𝗼𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗲𝘂𝗿𝗼 𝗮𝗿𝗲𝗮. 𝗕𝘂𝘁 𝘁𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝗿 𝘀𝘁𝗼𝗿𝘆 𝗶𝘀 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀.

According to the latest ECB figures, Luxembourg businesses benefit from the lowest average interest rate on new loans among the 21 euro-area countries surveyed.

This is more than a strong figure for Luxembourg. It illustrates a broader challenge for Europe: ensuring that a resilient banking sector has the capacity to finance investment, innovation and growth.

As banking competitiveness moves higher on the European agenda, the focus is increasingly shifting from diagnosis to delivery:

🔹 simpler and more proportionate rules
🔹 less fragmentation across the Single Market
🔹 more efficient use of capital and liquidity
🔹 greater capacity to finance Europe’s strategic priorities

As ABBL CEO Jerry Grbic puts it: “𝘊𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘷𝘦𝘯𝘦𝘴𝘴 𝘢𝘯𝘥 𝘳𝘦𝘴𝘪𝘭𝘪𝘦𝘯𝘤𝘦 𝘢𝘳𝘦 𝘯𝘰𝘵 𝘰𝘱𝘱𝘰𝘴𝘪𝘯𝘨 𝘰𝘣𝘫𝘦𝘤𝘵𝘪𝘷𝘦𝘴.”

Europe has spent more than a decade building a resilient banking system. The next challenge is to put that strength to work for businesses, households and Europe’s ambitions.

👉 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗮𝗿𝘁𝗶𝗰𝗹𝗲: https://lnkd.in/gBKsakdc

Banking Competitiveness Luxembourg EuropeanUnion Finance

🇪🇺 From 1 September, Luxembourg joins the European markets rolling out Wero, a new payment solution developed under the 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 (𝗘𝗣𝗜).

More than just another payment app, Wero reflects a broader ambition: strengthening Europe’s digital payment ecosystem through a secure, interoperable solution designed for consumers and merchants across borders.

Already available in Belgium, France and Germany, Wero now reaches more than 55 million consumers across European markets representing around 65% of all payments in Europe.

As Ananda Kautz, Member of the Management Board of the ABBL, explains:
"The objective is simple: to offer consumers and merchants a secure, interoperable European payment solution that works seamlessly across borders."

For Luxembourg, Wero is particularly relevant given the country’s highly integrated cross-border economy. The initiative illustrates how collaboration between banks, fintechs, payment institutions and technology providers can help shape the future of digital finance.

Key takeaways:
🔹 Supporting more seamless 𝗰𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 across Europe
🔹 Providing consumers and merchants with an additional 𝘁𝗿𝘂𝘀𝘁𝗲𝗱 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗽𝘁𝗶𝗼𝗻
🔹 Strengthening 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 in Europe’s payment ecosystem
🔹 Demonstrating how European 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 can translate into practical everyday services

Read the full article: 🔗 https://lnkd.in/eKaFeSjU

ABBL Wero EuropeanPaymentsInitiative Payments Innovation Luxembourg