Luxembourg’s Brexit sweet spot
The tiny state can claim victory in the race to become the EU’s private banking hub
As London’s investment bankers, corporate lenders and traders flock to Frankfurt, Paris and Dublin, the tiny state of Luxembourg has found a sweet spot — private banking. On Wednesday, it emerged that Citigroup is setting up a new base to administer the accounts of its EU private banking clients in Luxembourg, the second smallest nation in the EU by population size and area (after Malta). Citi, America’s fourth biggest bank by assets, is not the only international bank to recognise Luxembourg’s wealth management allure as the UK’s EU departure draws nearer. JPMorgan Chase is also expanding its private bank there, according to people familiar with the bank’s plans. And Bank of Singapore last month picked Luxembourg, over London, as the location for its European expansion. Barclays is expected to put its EU private bank in Dublin, while the only other big US bank with a European private bank, Goldman Sachs, continues to weigh its options.