The Luxembourg Banking and Investment Funds associations are committed to financial stability, the financing of the economy and citizens’ savings as well as a sustainable future for the planet and its inhabitants.

A robust financial sector for a safe future

Luxembourg banks are very well capitalized. Providing safety and financing for their

clients in Luxembourg and across the EU is part of their DNA. In addition they are

important liquidity providers for the rest of their respective banking groups in other

Member States. In order to preserve the diversity of the European banking landscape

and thereby financial stability, the ABBL supports more proportionality in legislation

applying to small and medium sized banks.

The Luxembourg financial centre is making Europe more competitive, as one of the

global leaders in cross-border distribution of funds and EU headquarters of major banks

from across the world. Luxembourg is committed to promoting European integration

and the EU’s product brands. ALFI is therefore calling for more stability in European

legislation in order to preserve well-recognised brands such as UCITS and AIFMs, and

innovation in order to develop new brands.

A pioneer in sustainable finance

Awareness of environmental, social and governance issues is increasing in the minds

of citizens and policymakers alike. ABBL and ALFI are significantly contributing to

global efforts via the innovative products and services of their respective members.

ALFI has been at the forefront of actively promoting and pioneering sustainable

finance opportunities for asset managers since 2006. ‘Responsible Investing’

including sustainable finance has been ever since a growing pillar of the Luxembourg

investment fund industry. 32% of European Responsible Investing Fund market

2019 are domiciled in Luxembourg (KPMG, European Responsible Investing Fund

market 2019).

LuxFLAG has been an early leader in guaranteeing transparency and ‘truth in labelling’.

After rigorous evaluations the agency has granted 136 labels as of July 2019.

The ABBL endoresed the UNEP FI principles for responsible banking in 2019.

Furthermore since 2018 Luxembourg legislation has been providing renewable covered

bonds standards. The first products are in the making. It is also worth highlighting that

the Luxembourg stock exchange, has created the first green bond exchange in Europe

and over 250 green bonds are listed on its markets as of July 2019.

Helping citizens and companies to prepare for the future

The Luxembourg fund industry is helping citizens access investment opportunities and

savings products which help them to save for their projects and pension. ALFI is therefore

committed to fostering the new European pension products such as the PEPP.

Luxembourg banks and investment funds are supporting European businesses to

grow through bank-based and market based financing.

ABBL and ALFI are committed to promoting strong investor protection standards and

dedicate time and resources to financial education. Selected initiatives include the

ABBL’s money week and ALFI’s “Understanding investment” website.

OUR VISIONThe ABBL and ALFI joint EU Representatives Office in Brussels represents both associations towards the European Union. The office was set up in 2006. Both associations have joined the Transparency Register in the year of its creation in 2008.

Antoine and Aurélie, together with the respective ABBL and ALFI teams, interact with policymakers and standard setters and represent the interests of the associations’ members in Brussels.

Contact Details:

ABBL and ALFI EU Representative Office

Avenue de Cortenbergh 168

1000 Brussels

Belgium

Antoine KremerHead of ABBL and ALFI EU Representative Office

+32 47 03 01 415 antoine.kremer@abbl-alfi.lu

Aurélie Cassou Senior Advisor in European Affairs

+32 49 51 66 512aurelie.casssou@abbl-alfi.lu

Established in 1939, the Luxembourg Bankers’ Association (ABBL) is the oldest

and largest professional association in the financial sector, representing the

majority of financial institutions as well as regulated financial intermediaries and

other professionals established in Luxembourg, including lawyers, consultants and

auditors working in or for the financial sector. The Luxembourg financial centre

represents 135 banks worldwide, including the seven largest Chinese banks.

The Association of the Luxembourg Fund Industry (ALFI) represents the face and

voice of the Luxembourg asset management and investment fund community.

Created in 1988, the Association today represents over 1,500 Luxembourg

domiciled investment funds, asset management companies and a wide range of

business that serve the sector. These include depositary banks, fund administrators,

transfer agents, distributors, legal firms, consultants, tax advisory firms, auditors

and accountants, specialised IT and communication companies.

For more information, please follow us on :www.abbl.lu I www.alfi.lu

Members of:

Follow us on

Transparency Register : ABBL 3505006282-58 ALFI 6182372280-83

EU REPRESENTATIVE OFFICE IN BRUSSELS

With origins in corporate finance, retail banking and financial markets in the XIXth and XXth century, the Luxembourg financial centre has diversified and grown into a world class finance hub. It ranks among the top three in the European Union.

The main pillars of the Luxembourg financial centre are asset management, various banking activities, insurance and re-insurance, capital markets, sustainable finance, FinTech and Renminbi business.

Focusing on banking respectively fund and asset management, the main activities of ABBL’s and ALFI’s members are:

Retail bankingLuxembourg retail banks offer their clients products and services such as deposit and savings accounts, mortgage and consumer credits as well as payment solutions and investment services.

Corporate banking, capital markets and cash management In Luxembourg, banks and other financial market intermediaries play a essential role in the international corporate and wholesale markets. The Grand Duchy is a prime location for eurobonds and international loans. Financing of all types is available, including a.o. acquisition finance, project finance and green loans.

Private banking and wealth managementLuxembourg’s private banking and wealth management industry is uniquely specialized in cross-border services. It offers a full range of supporting services, including investment advice, asset management, family offices, wealth planning, real estate management, inheritance planning and philanthropy.

Depositary bankingLuxembourg is a world class depositary banking centre that goes hand in hand with its leading position as an investment fund centre. Luxembourg depositary banks are specialized in offering the fund industry a full range of services from custody of assets to risk management and distribution.

Luxembourg gives retail as well as institutional investors access to investment opportunities via its ranges of UCITS as well as alternative investment funds. A leading investment fund domicile, the world’s prime asset managers have chosen the country as main hub for cross-border distribution of their international fund ranges.

Undertakings for Collective Investment in Transferable Securities (UCITS) UCITS are European investment funds that fulfil the high-quality criteria of the directive of the same name. Recognizing the potential of the UCITS directive, Luxembourg was in 1988 the first Member State to transpose it into national law. It has since become the continent’s leader in investment funds and is worldwide only second to the US in assets under management. UCITS funds provide investors with the safeguards of a

retail-oriented regulatory framework. This makes the product not only attractive to retail but also institutional investors, chief among which pension funds. The success of this framework has been such that Luxembourg UCITS are currently distributed in over 70 countries across the world including Europe, Asia, Latin America and the Middle East.

Alternative Investment Funds (AIFs)AIFs are considered funds that are not UCITS. Their managers and partially the funds are regulated by the European Union’s Alternative Investment Funds Managers Directive (AIFMD). Luxembourg has since its conception considered the directive an opportunity to create a worldwide brand akin to UCITS. Since then Luxembourg has become a leading centre in particular for real estate funds as well as for private equity and venture capital funds.

ASSET MANAGEMENT

BANKING

Luxembourg is the leading centre for global fund distribution. The graph illustrates the market share of Luxembourg domiciled investment funds among foreign funds sold in different markets around the world.

Luxembourg is Europe’s leading investment fund domicile with 4,350 billions euros in asset under management.

WHO WE ARE BANKING STATISTICS ASSET MANAGEMENT STATISTICS

Sour

ce: G

loba

l Fun

d Di

strib

utio

n 20

19, P

wC

Sour

ce: E

FAM

A an

d Pw

C an

alys

is, 3

1 De

cem

ber 2

018

Chile: 57%

Peru: 40%

Singapore: 68%

Hong-Kong: 81%

Japan: 59%Korea: 88%France : 58%

Germany : 56%Switzerland : 61%

Poland : 92%Denmark : 54%

Finland : 58%

Norway : 60%Sweden : 57%

Bahrain: 77%

EUROPE REST OF THE WORLD

24 GERMANY

15 FRANCE

08 ITALY

08 UK

07 SWEDEN

06 LUXEMBOURG

04 BELGIUM

03 NETHERLANDS

03 SPAIN

02 ANDORRA

02 PORTUGAL

02 NORWAY

02 IRELAND

01 LATVIA

01 DENMARK

01 LIECHSTENSTEIN

01 GREECE

01 CYPRUS

01 JERSEY

The Luxembourg banking sector includes 139 banks of which 91 are headquartered in Europe and 48 in the rest of the world.

13 CHINA

11 SWITZERLAND

06 JAPAN

05 USA

04 BRAZIL

03 QATAR

02 ISRAEL

02 RUSSIA

01 CANADA

4891

Sour

ce :

CSSF

, 201

8

— Number of banks per country of origin —

— International market share of Luxembourg —

— UCITS and AIFs assets — Top European domiciles —

Sour

ce :

CSSF

, 201

8

In Luxembourg, banks are highly capitalized and over the last years, the average solvency as well as liquidity ratio are above the required minimum european average.

— Solvency and liquidity ratios evolution (in %) —

2014 2015 2016 20182017

19,6%20,7%

24,8% 25,9% 25,2%

0

10

20

30

40

SOLVENCY

LIQUIDITY COVERAGE RATIO

2015 2016 20182017

500.0000 1.000.000 1.500.000 2.000.000 3.000.000 4.000.0002.500.000 3.500.000 4.500.000

150

250

200

157%

230% 236%

194%

as well as

LUXEMBOURG - 4,350,449

IRELAND

GERMANY

FRANCE

UNITED KINGDOM

NETHERLANDS

SWITZERLAND

SWEDEN

ITALY

SPAIN

OTHERS