According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Estonia is scored 4.9 out of maximum 7.0 and ranked 22nd out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.2 (23rd place).
Chart 1. Financial Market Development in Estonia. Source: WEF.
Soundness of banks is scored 5.7 bringing Estonia into the 28th place.
Chart 2. Soundness of Banks in Estonia. Source: WEF.
Banks in Estonia are mainly focused on the following areas:
Currently there are 42 credit institutions operating in Estonia.
In 2018 consolidated banking assets in Estonia were 26,558.74 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Estonia.
Recent structural changes (2013 - 2018) of the banking sector of Estonia are summarised in Table 1.
|Number of Opened Banks||2||3||3||2||1||1|
|Number of Closed Banks||2||0||1||3||2||1|
Table 1. Recent structural changes in the banking sector of Estonia.
The list of the most recently opened banks in Estonia is provided in Table 2.
|Hoiu-laenuühistu ERIAL (new)||January 2018|
|TF Bank AB (publ.) Eesti filiaal (new)||August 2017|
|Kindel HLÜ (new)||December 2016|
|HLÜ Geldex Eesti (new)||September 2016|
|Hea Koostöö Hoiu-laenuühistu (new)||November 2015|
|AS Inbank (new)||April 2015|
|Kodumaa Kapitali HLÜ (new)||January 2015|
|Intus Hoiu-laenuühistu (new)||November 2014|
|Eesti Arengu Hoiu-laenuühistu (new)||July 2014|
|Raha Hoiu-Laenuühistu (new)||January 2014|
Table 2. The most recently opened banks in Estonia.
All the credit institutions operating in Estonia can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||8|
|Savings and loan associations||24|
There are 8 branches of foreign banks from 5 different countries in Estonia. Table 4 shows the number of branches grouped by the country of origin.
|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 Estonia are summarised in Table 5.
Table 5. Deposit guarantee scheme in Estonia.
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 Estonia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Estonia. Source: ECB.