Banks in the Grand Duchy saw their aggregated balance sheet fall to €981.560bn at the end of December, down 2.72% from €1.009trn a month earlier, according to preliminary data published on Tuesday 10 February by the Central Bank of Luxembourg (BCL). On a year-on-year basis, the balance sheet was up 2.49%, the central bank reported.

The central bank attributed the monthly fall on the asset side mainly to loans to deposit-taking corporations. On the liabilities side, it linked the decline to lower deposits from deposit-taking corporations and other sectors.

Net interbank lending, defined as the difference between interbank loans and deposits, decreased by €5.385bn, or 2.44%, to €215.1m at the end of December 2025, the BCL reported.

Lending to resident non-bank customers fell by €1.236bn, or 1.03%, between November 2025 and December 2025. Over twelve months, these loans increased by €6.154bn, or 5.47%, according to the central bank.

Within the yearly figures, loans to non-financial corporations decreased by €613m, or 2.60%, the BCL stated. Loans for house purchases increased by €1.274bn, or 3.07%, while loans to other financial intermediaries increased by €5.439bn, or 13.44%.

On the liabilities side, deposits from the resident non-bank sector retracted by €8.25bn, or 2.65%, between November 2025 and December 2025, the BCL reported. Over twelve months, these deposits increased by €13.741bn, or 4.76%.

Between December 2024 and December 2025, deposits from other financial intermediaries, which had a 67.3% share as at 31 December 2025 and comprised deposits made up by monetary and non-monetary investment funds, increased by €12.49bn, or 6.54%, the BCL stated. Household deposits progressed by €2.242bn, or 4.72%.

Over the same period, deposits from non-financial corporations decreased by €1.31bn, or 5.2%, while deposits from other sectors progressed by €319m, or 1.28%, the central bank added.