Finance Minister Gilles Roth has urged ING Luxembourg to provide a "proper solution" for clients facing sudden account closures, as the CSSF closely monitors the developing situation.
In a statement shared on social media, Minister of Finance Gilles Roth announced that he met with the CEO of ING Luxembourg on Tuesday. Roth emphasised that he expects "clear communication" from the bank and a "proper solution" for the affected clients.
Minister Roth also mentioned that the Financial Sector Supervisory Commission (CSSF) is closely monitoring the situation.
Criticism has been mounting since the Dutch bank asked some of its clients in Luxembourg to find a new bank. Reports indicate widespread outrage over the bank's handling of the situation. One long-time customer shared on social media, "I've been a client for 12 years, my salary is deposited here, and I have a savings account, yet they closed my accounts."
Marc U., a customer for 40 years, also had to find a new bank. "They told me that management was implementing a new policy and that my account was not profitable enough for them," he said.
The controversy has since taken a political turn. MP Laurent Mosar of the Christian Social People's Party (CSV) raised the issue in a parliamentary question, stating, "ING, one of the largest retail banks in our financial centre, has informed its private clients that their accounts will be closed on 16 July 2024 due to the cessation of activities in Luxembourg.
The bank has not commented on this decision, apart from announcing that more information would be provided in the coming weeks." Mosar warned that such a decision by a major local bank could negatively impact other banks and harm the reputation of Luxembourg's financial centre. It could also complicate the process for individuals and companies to open and maintain accounts in Luxembourg.
Read also – Luxembourg Consumer Protection Association: 'Unfortunately, banks are allowed to close accounts without justification'
ING doubled its net profit in 2023
According to a source quoted by newspaper L'Essentiel, ING's policy "would be to keep only those who earn at least €5,000 a month and have savings of at least €50,000." This was confirmed by the Luxembourg Association for all Employees with a Need for Assistance (ALEBA).
It is worth remembering that banks are commercial enterprises that can choose to terminate their business relationships with customers. Notably, most ING branches in Luxembourg have been open by appointment only for several years. In 2023, ING employed around 1,000 people in Luxembourg.
Last February, the Dutch banking giant announced that its net profit had nearly doubled in 2023, reaching €7.29 billion, thanks to the "rapid rise in interest rates and a favourable economic environment." In the same year, ING welcomed 750,000 new customers, primarily in Germany, Spain, and the Netherlands, and had a total of 15.3 million customers worldwide.
