Luxembourg: Massive Bank Closures Expected
After the introduction of the automatic exchange of banking information, the small European country of Luxembourg is likely to suffer serious consequences, according to renowned tax lawyer Alain Steichen. Wort.lu reports.
“You have to be prepared for the fact that only 60 to 70 banks will exist in coming years,” says renowned tax lawyer Alain Steichen to the French news agency AFP.
After the introduction of the automatic exchange of information starting 2015, significant changes are expected in the banking landscape. Some customers are likely to turn their back to the Luxembourg financial center.
Private Banking Sector Particularly Affected
Word is, 120 out of 141 total institutions are active in the field of private banking in the Grand Duchy, i.e. in the investment advisory and management fields. According to the report, these institutions have particularly struggled with the expected consequences of the exchange of information.
“Some banks,” so Alain Steichen, Esq., “will lack the critical mass to survive due to the sheer loss of customers.” Ultimately, over half of the banks in Luxembourg could disappear after 2015.