With market stress and potentially difficult times ahead, what is the banks' line of defence? Jerry Grbic, CEO of the ABBL, answered the question in two interviews with Delano.
On the recent publication by the CSSF of the 2022 aggregate profit and loss accounts of credit institutions: "Net interest income of Luxembourg banks is expected to stabilise this year, but to come under increased pressure in 2024", explains Jerry Grbic. It is important to maintain a strong banking sector, and the ABBL strives to find the right balance between regulation and profitability.
On the measures taken by national regulators and banks to ensure that private customers and businesses have confidence that their deposits and, more generally, their banking business is in good hands. In Europe, "unlike in the US, regulatory liquidity rules, such as the liquidity coverage ratio and the net stable funding ratio, apply to all banks, regardless of size," says Jerry Grbic.