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Economy and Banking Sector of Estonia

Financial Market Development

Financial Market Development
4.9 (max 7.0), 22nd out of 138 countries
Banks' Soundness
5.7 (max 7.0), 28th out of 138 countries

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).

Financial Market Development in Estonia.

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


Soundness of banks is scored 5.7 bringing Estonia into the 28th 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
42
Consolidated Assets (2018)
26,558.74 mln EUR  (+4.88%)
Recent Changes (2018)
new banks: 1, closed banks: 1

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.

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.

201320142015201620172018
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 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.

CategoryNumber of Banks
Banks9
Branches of foreign banks8
Central banks1
Savings and loan associations24

Table 3. Number of banks by category in Estonia.

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 OriginNumber of Branches
 Sweden3
 Finland2
 Latvia1
 Denmark1
 Norway1

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
EUR

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 (Feb 2019, EUR)
0.44 %  (Jan 2019: 0.43 %)
In February 2019, 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 0.44% which was above the Euro Area average (0.32%).
Deposit Rates in Estonia.

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

Further Information