According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Belgium is scored 79.5 out of maximum 100.0 and ranked 24th out of 144 analysed economies.
Chart 1. Financial Market Development in Belgium. Source: WEF.
Soundness of banks is scored 5.3 bringing Belgium into the 60th place.
Chart 2. Soundness of Banks in Belgium. Source: WEF.
Banks in Belgium are mainly focused on the following areas:
Currently there are 95 credit institutions operating in Belgium.
In 2018 consolidated banking assets in Belgium were 993.24 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Belgium.
Recent structural changes (2013 - 2018) of the banking sector of Belgium are summarised in Table 1.
|Number of Opened Banks||5||6||1||3||2||3|
|Number of Closed Banks||6||6||4||8||4||2|
Table 1. Recent structural changes in the banking sector of Belgium.
The list of the most recently opened banks in Belgium is provided in Table 2.
|Fca Bank S.p.a||October 2018|
|CREDIT FONCIER ET COMMUNAL D'ALSACE ET DE LORRAINE-BANQUE||January 2018|
|Hoist Finance AB||January 2018|
|Adyen BV, Belgian Branch||October 2017|
|CAISSE D'EPARGNE ET DE PREVOYANCE HAUTS DE FRANCE||May 2017|
|MUFG Bank (Europe) NV||May 2016|
|BANK OF AMERICA MERRILL LYNCH INTERNATIONAL DESIGNATED ACTIVITY COMPANY||May 2016|
|CITIBANK EUROPE PLC - BELGIUM BRANCH||February 2016|
|MeDirect Bank||April 2015|
|CBP Quilvest Belgium N.V./S.A., Branch of CBP Quilvest SA||December 2014|
Table 2. The most recently opened banks in Belgium.
All the credit institutions operating in Belgium can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||60|
There are 61 branches of foreign banks from 14 different countries in Belgium. Table 4 shows 10 countries having the biggest number of branches in Belgium.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Belgium are summarised in Table 5.
Table 5. Deposit guarantee scheme in Belgium.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.
So, only the deposits made with Belgian banks in the following currencies are covered by the deposit guarantee scheme of Belgium
|RON||Romanian new leu|
It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Belgian deposit guarantee scheme.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Belgium is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Belgium. Source: ECB.