According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Portugal is scored 3.3 out of maximum 7.0 and ranked 116th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 2.8 (131st place).
Chart 1. Financial Market Development in Portugal. Source: WEF.
Soundness of banks is scored 3.1 bringing Portugal into the 129th place.
Chart 2. Soundness of Banks in Portugal. Source: WEF.
Banks in Portugal are mainly focused on the following areas:
Currently there are 153 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.
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 Banks||3||1||1||3||2||2|
|Number of Closed Banks||1||4||4||1||3||5|
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.
|CECABANK SA - SUCURSAL EM PORTUGAL (new)||September 2018|
|BANCO DE SABADELL, SA - SUCURSAL EM PORTUGAL (new)||May 2018|
|TOYOTA Kreditbank GmbH - Sucursal em Portugal (new)||March 2017|
|ONEY BANK – SUCURSAL EM PORTUGAL (new)||January 2017|
|WIZINK BANK SA - SUCURSAL EM PORTUGAL (new)||December 2016|
|Bankinter, SA - Sucursal em Portugal (new)||April 2016|
|BANQUE DE PATRIMOINES PRIVÉS - SUCURSAL EM PORTUGAL (closed)||February 2016|
|BANCO CTT, SA (new)||October 2015|
|BNI - Banco de Negócios Internacional (Europa), SA (new)||August 2014|
|Credit Suisse (Luxembourg), SA - Sucursal em Portugal (closed)||November 2013|
Table 2. The most recently opened banks in Portugal.
All the credit institutions operating in Portugal can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||33|
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 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 Portugal are summarised in Table 5.
Table 5. Deposit guarantee scheme in Portugal.
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 Portugal is set to A1 (upper medium grade), foreign currency deposit ceiling is A1 (upper medium grade).
Chart 4. Deposit Rates in Portugal. Source: ECB.