The aggregated balance sheet of the grand duchy’s banks grew by 1.18% in February 2025, reaching €980.84bn, according to data by the Luxembourg Central Bank on 31 March 2025. This marks an increase from €969.41bn at the end of January 2025 and represents a 4.37% rise over the past year.
The BCL stated that the monthly rise was primarily driven by increased lending to other banks and deposit-taking corporations on the assets side, while, on the liabilities side, the growth was attributed to deposits from other sectors.
Net interbank lending, defined as the difference between interbank loans and deposits, rose by €2.93bn or 1.24%, reaching €240.33bn at the end of February 2025.
Loans to resident non-bank customers grew by €86m or 0.08% between January and February 2025. Over the past twelve months, these loans increased by €1.56bn or 1.38%. However, loans to non-financial corporations declined by €4.56bn or 16.34% on an annual basis. Loans for house purchases rose by €252m or 0.62% over the same period, while loans to other financial intermediaries increased by €6.33bn or 17.16%.
On the liabilities side, deposits from the resident non-bank sector increased by €4.23bn or 1.42% in February 2025. Compared to February 2024, these deposits grew by €31.82bn or 11.77%. OFI deposits, which accounted for 67.0% of total deposits as of 28 February 2025 and included those held by monetary and non-monetary investment funds, rose by €23.85bn or 13.36% over the year. Household deposits increased by €1.65bn or 3.59%, NFC deposits by €3.07bn or 13.34% and deposits from other sectors by €3.25bn or 14.3%.