Supervision

Banco de Portugal is responsible for the prudential and market conduct supervision of credit institutions, financial companies and payment institutions with a view to ensuring the stability, efficiency and soundness of the financial system, as well as the compliance with rules of conduct and transparency requirements towards bank customers, thereby ensuring the safety of deposits and depositors, and the protection of consumer interests.

The powers and responsibilities of Banco de Portugal as supervisory authority are stipulated in its Organic Law, in the Legal Framework of Credit Institutions and Financial Companies and in the Legal Framework of Payment Institutions and Payment Services.

The range of institutions supervised by Banco de Portugal is wide and diversified. Firstly, this supervision covers credit institutions (whose activity is to accept deposits or other reimbursable funds from the public, and invest those funds at their own risk by granting credit), i.e. banks, caixas económicas (savings banks), caixas de crédito agrícola mútuo (mutual agricultural credit banks) and their Caixa Central (central mutual agricultural credit bank), credit financial institutions, mortgage credit institutions, investment companies, financial leasing companies, factoring companies, credit purchase financing companies, mutual guarantee companies and electronic money institutions.

Secondly, it covers financial companies, a group which includes dealers, brokers, foreign-exchange or money-market mediating companies, investment fund management companies, credit card issuing or management companies, wealth management companies, regional development companies, exchange offices, credit securitisation fund management companies, and other companies such as Finangeste.

Payment institutions, as well as holding companies are also subject to the supervision of Banco de Portugal, in the latter case, when their holdings, either directly or indirectly, confer on them a majority of the voting rights in one or more credit institutions or financial companies. Banco de Portugal may also subject to its supervision other holding companies which hold a qualifying holding in a credit institution or financial company.