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Economy and Banking Sector of Portugal

Financial System Development

Financial System
70.0, 39th out of 144 countries
Banks' Soundness
45.0, 125th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Portugal is scored 70.0 out of maximum 100.0 and ranked 39th out of 144 analysed economies.

Financial Market Development in Portugal.

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

Soundness of banks is scored 3.7 bringing Portugal into the 125th place.

Soundness of Banks in Portugal.

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

Further Information

Banking Focus

Banks in Portugal are mainly focused on the following areas:

  • cooperative retail banking
  • universal banking
  • retail banking

Banking Supervision

Banco de Portugal, EP

Banking Sector Structure

Number of Banks
Consolidated Assets (2018)
384.52 bln EUR  (+0.86%)
Recent Changes (2018)
new banks: 2, closed banks: 5

Currently there are 154 credit institutions operating in Portugal.

In 2018 consolidated banking assets in Portugal were 384.52 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.

Consolidated banking assets in Portugal.

Chart 3. Consolidated banking assets in Portugal.

Recent structural changes (2013 - 2018) of the banking sector of Portugal are summarised in Table 1.

Number of Opened Banks311322
Number of Closed Banks144135

Table 1. Recent structural changes in the banking sector of Portugal.

The list of the most recently opened banks in Portugal is provided in Table 2.

All the credit institutions operating in Portugal can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks33
Central banks1
Cooperative banks86
Savings banks4

Table 3. Number of banks by category in Portugal.

There are 33 branches of foreign banks from 10 different countries in Portugal. Table 4 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
ES Spain7
FR France7
DE Germany6
LU Luxembourg4
GB United Kingdom3
NL Netherlands2
HU Hungary1
AT Austria1
IE Ireland1
IT Italy1

Table 4. Number of branches of foreign banks in Portugal 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 Portugal are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Scheme Participants
all credit institutions operating in Portugal
branches of non-EU banks
branches of Portuguese banks abroad
Scheme Exemptions
branches of EU-banks (covered by their home countries)
Eligible Depositors
natural persons
legal entities
Non-Eligible Depositors
credit institutions
investment companies
financial institutions
insurance and reinsurance undertakings
collective investment institutions
pension funds
public sector entities
supranational or international bodies
Covered Accounts
current accounts
savings accounts
time deposit accounts
housing savings
retirement savings
certificates of deposit
cash holdings resulting from transitional situations arising from normal banking operations
Covered Currencies
all currencies, namely
  • EUR (Euro)
  • foreign currencies
Paid In Currency

Table 5. Deposit guarantee scheme in Portugal.

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)
Aa3 (high grade)
Foreign Currency
Aa3 (high grade)

Local currency (Euro) deposit ceiling for Portugal is set to Aa3 (high grade), foreign currency deposit ceiling is Aa3 (high grade).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
0.07 % (unchanged)
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 0.07% which was below the Euro Area average (0.31%).
Deposit Rates in Portugal.

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

Further Information