Lisbon, Oct. 8, 2026 (Lusa) - The Governor of the Bank of Portugal (BdP) said on Thursday that banks can raise deposit rates and improve savings incentives, noting that rates paid in Portugal remain among the lowest.
«The interest rates offered to depositors remain significantly lower than in other European countries,» said Álvaro Santos Pereira at the «Money Conference», organised by Diário de Notícias, emphasising that the difference is also evident in current accounts.
Data presented by the governor showed that in July Portugal averaged 1.59% on new fixed-term deposits from private individuals, placing the country among the eurozone member states with the lowest returns.
The euro area average stood at 2.14%.
Finland, the Netherlands and Italy had the highest average rates, at 2.58%, 2.55% and 2.47% respectively.
Álvaro Santos Pereira therefore considered that «there is scope to raise deposit rates and there is scope to improve incentives for saving», adding that «if we want businesses to invest more and households to save more, it is essential to improve the country's savings conditions».
Deposit rates take on particular significance when inflation has outpaced interest rates.
«Inflation in recent years has consistently been higher than interest rates, and obviously, this situation offers an opportunity for financial instruments to enhance purchasing power,» warned Santos Pereira.
The issue of deposit interest rates arises at a time when the Portuguese banking system is, according to the Bank of Portugal (BdP), in a more robust financial position.
Capital ratios have been rising, with the highest-quality capital ratio (CET1) reaching 18.2% in June, whilst the total capital ratio stood at 20.9%.
The sector's profitability indicators also remain high and stable, with return on equity (ROE) at 13.5% in June, according to the governor's data.
Credit quality has also improved, with the non-performing loan (NPL) ratio standing at 2.1% in June.
At the same time, bank lending has increased significantly, with mortgage lending up 10.6% in June.
Speaking at the «Money Conference», Santos Pereira also emphasised that the banking sector faces challenges shaped by technological transformation and Artificial Intelligence (AI), changes in the profile of banking customers, the fight against fraud, competition, cybersecurity and regulation.
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