The Central Bank of Luxembourg reported that, based on preliminary data, the aggregated balance sheet of banks in the Grand Duchy reached an all-time high of €1.027trn on 31 March 2026, compared with €1.001trn on 28 February 2026, an increase of 2.60%. On an annual basis, the aggregated balance sheet increased by 4.06%.
The record level highlights the scale of Luxembourg’s banking industry and its continued role as a hub for interbank activity, investment fund flows and cross-border financial structures.
On the assets side, the BCL noted that the monthly increase was mainly due to higher loans to other banks and deposit-taking corporations. On the liabilities side, the increase was driven by deposits from other sectors.
Interbank lending
Net interbank lending, defined as the difference between interbank loans and deposits, rose by €13.655bn, or 6.14%, to reach €236.077bn at the end of March 2026.
Loans to resident non-bank customers also increased by €1.261bn, or 1.05%, between February 2026 and March 2026. Over 12 months, these loans rose by €5.654bn, or 4.88%.
On a yearly basis, the BCL reported that loans to businesses and enterprises increased by €1.370bn, or 6.27%. Loans for house purchases rose by €1.167bn, or 2.80%, while loans to other financial intermediaries increased by €2.789bn, or 6.12%.
Deposits
Deposits from resident non-bank customers, including funds, households and companies, rose by €14.204bn, or 4.51%, between February 2026 and March 2026, the BCL stated. Over 12 months, these deposits increased by €19.351bn, or 6.25%.
Investment fund-linked deposits remained the largest component of resident non-bank deposits. The BCL stated that deposits from other financial intermediaries, including monetary and non-monetary investment funds, rose by €17.126bn, or 8.21%, between March 2025 and March 2026, accounting for 68.6% of the total as at 31 March 2026.
Household deposits also increased, rising by €2.776bn, or 5.8%, over the same period, the BCL stated. However, deposits from non-financial corporations fell by €3.344bn, or 12.38%, while deposits from other sectors rose by €2.793bn, or 10.61%.
