Posted on 20 October 2022
LPEA Bank Survey: Opening Bank Accounts in Luxembourg
In the most recent edition of LPEA’s Insight/Out Magazine, Benoit Dewar examines the barriers associated with opening bank accounts in Luxembourg, what the challenges mean for GPs, banks, and the country, and what’s being done to overcome problems.
Lack of experience with alternative structures, concerns about compliance burdens, and risk adversity are some of the reasons banks are reluctant to begin a relationship with GPs. As a result, it often takes three times longer than it should for a GP to open an account. Despite this, the 60+ GPs who responded to an LPEA survey are generally happy with their banking relationships, and banks are willing to work on solutions. “The gap in bank account opening times doesn’t seem irreconcilable,” Benoit said. “Alternative asset managers do consider … Luxembourg banks as a concrete option for bank accounts but also for other profitable services such as bridge financing and FX services.”
To learn more about the pressures Luxembourg banks face and the results of the LPEA survey, read the article here (page 30-31).