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Economy and Banking Sector of Estonia

Financial System Development

Financial System
65.2, 52nd out of 144 countries
Banks' Soundness
74.2, 47th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Estonia is scored 65.2 out of maximum 100.0 and ranked 52nd out of 144 analysed economies.

Financial Market Development in Estonia.

Chart 1. Financial Market Development in Estonia. Source: WEF.

Soundness of banks is scored 5.5 bringing Estonia into the 47th place.

Soundness of Banks in Estonia.

Chart 2. Soundness of Banks in Estonia. Source: WEF.

Further Information

Banking Focus

Banks in Estonia are mainly focused on the following areas:

  • savings and loans
  • universal banking
  • retail and corporate banking

Banking Supervision

Eesti Pank

Banking Sector Structure

Number of Banks
Consolidated Assets (2018)
26,558.74 mln EUR  (+4.88%)
Recent Changes (2018)
new banks: 1, closed banks: 1

Currently there are 38 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.

Consolidated banking assets in Estonia.

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 Banks233211
Number of Closed Banks201321

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.

NameStart Date
Hoiu-laenuühistu ERIALJanuary 2018
TF Bank AB (publ.) Eesti filiaalAugust 2017
Kindel HLÜDecember 2016
HLÜ Geldex EestiSeptember 2016
Hea Koostöö Hoiu-laenuühistuNovember 2015
AS InbankApril 2015
Kodumaa Kapitali HLÜJanuary 2015
Intus Hoiu-laenuühistuNovember 2014
Eesti Arengu Hoiu-laenuühistuJuly 2014
Raha Hoiu-LaenuühistuJanuary 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.

CategoryNumber of Banks
Branches of foreign banks5
Central banks1
Savings and loan associations23

Table 3. Number of banks by category in Estonia.

There are 5 branches of foreign banks from 4 different countries in Estonia. Table 4 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
FI Finland2
LV Latvia1
NO Norway1
SE Sweden1

Table 4. Number of branches of foreign banks in Estonia grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Estonia are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Temporary High Balance
170,000 EUR
Scheme Participants
all credit institutions operating in Estonia
branches of Estonian banks abroad
Scheme Exemptions
branches of foreign banks (covered by their home countries)
savings and loan associations
Eligible Depositors
natural persons
  • citizens of Estonia
  • residents of Estonia
  • foreign citizens
  • foreign residents
legal entities
  • registered in Estonia
  • registered abroad
Non-Eligible Depositors
local governments
insurers or reinsurers
investment funds
credit institutions
e-money institutions
payment institutions
credit intermediaries
Covered Accounts
current accounts
demand deposits
term deposits
overnight deposits
operating deposits
growth deposits
savings deposits
children's deposits
Covered Currencies
all currencies, namely
  • EUR (Euro)
  • foreign currencies
Paid In Currency

Table 5. Deposit guarantee scheme in Estonia.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Estonia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
0.71 %  (Feb 2020: 0.78 %)
In March 2020, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.71% which was above the Euro Area average (0.31%).
Deposit Rates in Estonia.

Chart 4. Deposit Rates in Estonia. Source: ECB.

Further Information