The Banking Environment
Economic Background
The EU represents about 77% of both imports and exports, with the USA the next most important. Within the EU the leading partners are Spain, Germany, France, Italy and the UK.
Banking in general
Per capita GBP is USD12,000. In common with most other EU countries, services represents 70% of GBP and industry only 28%. Agriculture is slightly above the norm at 4% of GDP.
Banco de Portugal is the Central Bank and is responsible for the regulation of financial companies & credit institutions as well as controlling money, financial and foreign exchange markets. As an agent for the European Central Bank (ECB), Banco de Portugal is no longer autonomous in formulating monetary policy and issuing currency and is under the direction of the ECB.
Generally there are three main categories of bank in Portugal - commercial, investment & savings banks, the largest of all of these banks being the entirely state-owned Caixa Geral de Depositos
There are three leading commercial banking groups – Banco Comercial, Banco Espirito Santo, and Totta Group.
Interest-bearing Current, Deposit, Foreign Currency and Savings accounts are all available to Residents and Non-residents in Portugal. These can be denominated in most currencies.
Residents are permitted to hold foreign currency accounts and domestic currency accounts which are convertible into foreign currency. Non-residents may hold accounts in either domestic or other currencies.
Overdraft facilities are available, as well as the short-term funding and investment options listed below:
- Commercial Paper
- Local Currency Loans
- Foreign Currency Loans
- Money Market Accounts
- Short Term Government Paper
- Bank/Trade Bills
Currency
The euro