Interactive Briefing for Easy Understanding
An interactive briefing on the CSSF’s 2024 Annual Report, highlighting Luxembourg’s stability and strategic direction in a landscape of global fragmentation, digital transformation, and evolving regulation.
Strategic Outlook
This section outlines the macroeconomic context and Europe’s strategic response. It covers the shift towards global fragmentation and the critical initiatives, like the Capital Markets Union, designed to bolster the EU’s competitiveness and economic resilience.
Global Fragmentation
The CSSF notes a “wake-up call for Europe” amidst growing “unreliability, uncertainty and unpredictability,” driven by geopolitical shifts and a move away from traditional globalization.
Europe’s Financing Challenge
Over €1,000 billion is needed annually for defense, sustainable, and digital transitions, highlighting the urgent need to boost EU capital markets.
Luxembourg’s Strength
In this volatile environment, Luxembourg’s “political stability and predictability, combined with its AAA rating, are undoubtedly a strength.”
Deepening Capital Markets Union (CMU)
To address financing gaps, Luxembourg strongly supports the Savings and Investment Union (SIU). The focus is on revitalizing key market mechanisms to channel savings into the real economy.
Click on a topic to explore the key focus areas for boosting capital markets.
Key Supervisory Priorities
This interactive dashboard details the CSSF’s core focus areas. You can explore the specific challenges, regulatory developments, and supervisory actions related to Sustainable Finance, Digital Innovation, and Anti-Financial Crime efforts.
Financial Sector Performance
This data hub provides a visual overview of Luxembourg’s financial sector performance in 2024. Use the buttons to switch between key metrics for the Banking, Investment Fund, and Payments sectors to see growth, stability, and transaction volumes.
Regulatory Framework & Governance
This section covers the CSSF’s approach to supervision and its internal operations. It details the push for regulatory simplification across Europe and provides insights into the CSSF’s own digital transformation, staffing, and governance mechanisms like whistleblowing.
A More Principle-Based Regulation
The CSSF advocates for the European Commission’s simplification agenda, aiming to move “from a rule-based to a more principle-based regulation” without de-regulating. This includes supporting directly applicable regulations over directives to ensure convergence.
Macroprudential Oversight
Active monitoring of the real estate market continues, with the countercyclical capital buffer held at 0.5%.
CSSF Operations: “CSSF 5.0”
The “CSSF 5.0” strategy focuses on digital transformation and becoming a data-driven authority. Staffing grew to 983 agents in 2024. Whistleblowing reports saw a significant increase, confirming trust in the CSSF’s channels.
Consumer Protection
Addressing low financial literacy is a key priority, with initiatives like the Lëtzfin portal and a revised national strategy.
DORA & PFS
The CSSF emphasizes the importance of the Digital Operational Resilience Act (DORA) for the entire financial sector. The act establishes a uniform framework for ICT risk management, incident reporting, and digital resilience testing.
Certain Support Professionnels du Secteur Financier (PFS), due to the nature of the services offered, are indirectly affected by DORA as ICT third-party service providers for the entities falling within the scope of this regulation. The support PFS concerned must therefore comply with the requirements incumbent upon them as ICT third-party service providers.
