Finding new growth industries is difficult for Luxembourg banks

In the first of a two-part series, Jeffrey Dentzer, Head of Luxembourg Markets and CIB at Banque Internationale à Luxembourg (Luxembourg Bank), outlined the low-cost ESG-compliant customer, real estate and financial industry and outlined the regulations that will be introduced in the Luxembourg banking sector in 2024. Jeffrey Denzer, Head of Luxembourg Markets and CIB at the Bank of Luxembourg, expects that ESG-active clients will be at an advantage as sustainability regulations are likely to accelerate. Denzer is focusing on corporate sustainability due diligence regulations that will require 2024 data reporting in 2025. In an interview with Delano, Denzer argued that companies should already be in a position to produce sustainability reports, or at least have the data if not. He said, “Regulators value data and want to harmonize it to facilitate comparability among banks. He anticipates that “ESG compliance” will be required for customers to use normal banking services. Clients in brown economies “will have to pay more to get bank loans.” He acknowledged, however, that their financing may no longer come from banks. In fact, these players are not willing to pay higher interest rates and may turn to private financial institutions for liquidity. Regulations to Watch Banks [...]

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