This review1 examines specific aspects of the banking supervision regime in Luxembourg focusing on the supervision by the Commission de Surveillance du Secteur Financier (CSSF) of Less Significant Institutions (LSIs). In addition to updating the findings of the previous Technical Note of 2017, it examines the CSSF’s supervisory approach to liquidity risk, interest rate risk in the banking book (IRRBB), operational risk, and related-party exposures.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400280351
- ISSN
- 1934-7685
- Pages
- 28
- Published in
- United States of America
- Series
- Country Report No. 2024/182
- StockNumber
- 1LUXEA2024005
Table of Contents
- Glossary 4
- Executive Summary 6
- Introduction 9
- A. Scope and Approach 9
- B. Institutional Setting 9
- Selected Issues 11
- A. Governance and Operational Independence of the CSSF 11
- B. Division of Supervisory Liquidity Responsibilities: BCL and CSSF 12
- C. Liquidity Supervision of LSIs 14
- D. Operational Risk and Resilience 15
- E. Related Party Lending 17
- F. Interest Rate Risk in the Banking Book (IRRBB) 18
- G. Designation of CBL Direct Supervision by the ECB 19
- Progress on 2017 FSAP Recommendations 19
- A. Resources and Skills in Banking Supervision 21
- B. Supervisory Approach 23
- C. Interconnectedness with Foreign-Based Banking Parent Groups 23
- D. Home-Host Relationships 26
- E. Credit Risk 27
- F. Regulation of Nonbank Holding Companies 28
