|
Luxembourg's systemically important institutions are financially sound, says Moody's Investors Service in a new report published today. However, Moody's says tightening tax scrutiny and faltering revenues pose risks for the country's large private banking sector. Moody's report also identifies three main risks for these banks in 2014 (1) intra-group lending, which is a significant risk to the Luxembourg banking system as a whole; (2) sovereign exposures due to large excess liquidity reinvested in the financial markets; and (3) concentrated exposures to the residential housing market for the four systemic banks.
Moody's says that Luxembourg's four systemically important banks exhibit profitability metrics that are above those seen in other European banking systems....
|