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Publication of the 2012 Retail Banking Markets Monitoring Report

Banco de Portugal has published the Retail Banking Markets Monitoring Report for the first time. The report provides a description of the recent developments for simple term deposits and structured deposits markets, as well as for the mortgage credit and consumer credit markets.

These analyses have been published in the Banking Conduct Supervision Reports as part of Banco de Portugal’s monitoring of the structure and functioning of these markets. However, the quality of this information and its importance for credit institutions, bank customers and the general public justify its disclosure as a separate publication. This report aims to provide financial information for market participants and help those markets operate more transparently and efficiently.

Recent developments in retail banking markets

Simple term deposits

  • Many of the simple term deposits offered by banks are fixed interest rate deposits, with a term of up to one year and allowing early withdrawal but with an interest penalty;
  • In May 2013, 365 different fixed interest rate deposits were being offered by banks, 18 and 12 per cent less than in December 2011 and in December 2012 respectively. Around 83 per cent of these were deposits with terms up to one year, as longer maturity deposits have lost importance. Only three of the banks analysed offered variable interest rate deposits.

Structured deposits

  • In 2012 and in the first quarter of 2013, the number of structured deposits offered, the amounts invested and the number of depositors involved in this market grew significantly. Nevertheless, structured deposits continued to account for a very small share of deposits offered by the banking sector. These banking products are mainly index-linked deposits, their remuneration depends on the performance of the stock market and they do not generally allow early withdrawal;
  • In 2012, 61 different structured deposits were offered in this market, with an amount of around €1.3 billion deposited by 114 thousand depositors. In 2011, 35 structured deposits had been offered, with a total amount of €351 million invested by around 32 thousand depositors. The structured deposits market continued to grow during the first quarter of 2013, with an increase of 64 per cent in the number of deposits being offered and of 68 per cent in the amounts being invested, compared with the quarterly average in 2012.

Mortgage credit

  • The number of contracts concluded and the respective average amounts decreased in 2012. From 1 October 2011 to 30 September 2012, 33,225 contracts regulated under the mortgage credit legal framework were concluded (58.7 per cent less than in the same period of the previous year). On average, the initial amount for these loans stood at €70,283 (a drop of 16.7 per cent, compared with the same period of the previous year);
  • The average spread on variable interest rate contracts increased in contracts concluded from 1 October 2011 up to 30 September 2012 (86 basis points in mortgage credit and 106 basis points in related loans (crédito conexo) and the average maturity of contracts fell (from 34.1 to 31.6 years in mortgage credit and from 29.9 to 26.6 years in related loans), compared with contracts concluded in the same period of the previous year;
  • From 1 October 2011 up to 30 September 2012, early repayments and amounts repaid also fell (by 23.6 per cent and 30.4 per cent respectively). Contracts were mainly renegotiated through an extension of their maturity or the introduction of a capital repayment grace period.

Consumer credit

  • In 2012 the number of contracts concluded and the amount of credit provided decreased sharply, even more so than in 2011. A monthly average of 97,037 contracts were concluded in 2012 (12 per cent less than in 2011), accounting for a monthly amount of credit provided of around €268.8 million (24 per cent less than in 2011). In 2012 the amount of credit provided every month stood below the amount recorded in the same period of the previous year;
  • This decrease affected all types of credit. Although the amount of personal credit provided decreased in 2012 (23.1 per cent less than in 2011), this continued to be the type of credit with the greatest share of total credit provided. For revolving credit, where credit cards predominate, the reduction (a drop of 9 per cent) was less pronounced than that observed for other types of credit. Car loans experienced the sharpest decline (a decrease of 35.7 per cent) and lost relative importance since 2010.


Banco de Portugal is the banking conduct supervisory authority, overseeing credit institutions conduct of business in retail banking markets (i.e., mortgage and consumer credit, deposits and payment services).

The analysis shown in this Markets Monitoring Report is based on information obtained by the Banco de Portugal as a result of its banking conduct supervision activities, namely from the credit institutions' specific reports and websites.

Lisbon, 6 August 2013