Banks

Several types of bank can be established under Luxembourg law :

• Universal banks, which are authorised to perform all kinds of banking activities (most banks established in Luxembourg operate as all-purpose banks).
• Mortgage bond issuing banks, whose activity is limited to the issuing of covered bonds.

In addition to these, there are institutions with the status of payment establishment and issuer of electronic money, whose activities are limited, respectively, to the offer of payment services and the creation of electronically stored money.

Luxembourg banks have specialised in international loans, private banking and financial services for large and medium-sized businesses.

Asset management activity can also be carried on by investment advisers and independent wealth managers. All physical or moral persons professionally active in this area must adopt the status of financial sector professional (professionnel du secteur financier – PSF) and are subject to authorisation and ongoing prudential supervision by the financial sector supervisory authority (Commission de surveillance du secteur financier – CSSF), like the banks themselves.