Includes special features of this country’s banking system and rules/laws that might impact U.S. business.
Last Published: 11/19/2019

The Portuguese banking system has witnessed significant structural changes over the last three decades, with a shift from a government-controlled system to a market-driven environment fully integrated with the European Union. These profound structural and operational changes such as the abolishment of administrative interest rates in the 1980s, liberalization and harmonization in the 1990s and related implementation legislation have brought Portuguese banking regulations in line with EU legislative practices.
In a February 2016 post-bailout program monitoring report, the IMF warned that the Portuguese banking system’s balance sheets needed “to be strengthened to avoid further negative surprise and protect taxpayers.”  The report also noted banks need to further reduce their debt burden, which was “holding back the economy’s growth potential.”  The government has taken steps to address problems in the banking sector, facilitating the recapitalization or restructuring of four of the five largest banks in 2016 and 2017.
Portugal’s largest bank by assets, Caixa Geral de Depositos (CGD), is state-owned and, at the end of 2017, had assets worth €93.2 billion.  It has revenues greater than one percent of GDP .CGD has the largest market share in customer deposits, commercial loans, mortgages, and many other banking services in the Portuguese market. CGD was recapitalized by the Government in €3.9 billion in 2017 according to market terms and in line with EU state aid rules.

According to the Bank of Portugal, the banking system’s total assets broke the downward trend observed in recent years, reaching €386 billion in the second quarter of 2018.   This development stems from an increase of cash balance in key banks and to a lesser extent, in the portfolio of loans to customers.  In the second trimester, however, the downward trend returned, bringing the banking system’s assets to €384 billion due to the decrease of cash balance in key banks. The last trimester of 2018 brought a 0.2% increase in relation to the previous trimester.
As a member of the EU, Portugal offers a modern banking system with advanced financial products. The country has one the most advanced inter-banking networks in the world.  ATMs and bank branches are easily found all over Portugal.  Electronic banking is widespread, and Internet banking is offered by all major banks. Major credit and debit cards are accepted in most Portuguese hotels, shops, restaurants and gas stations.
Most banks are open Monday to Friday from 8:30 am to 3:00 pm and are closed on weekends and public holidays.
The entity supervising the banking sector in Portugal is the Portuguese Central Bank (Bank of Portugal), a member of the European System of Central Banks (ESCB).
 

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