Lisbon, May 26, 2025 (Lusa) - The president of the Portuguese Banking Association (APB) criticised excessive regulation of the banking sector on Monday, while the deputy governor of the Bank of Portugal considered that regulation has strengthened banks and does not prevent profits.
In speeches at the Money Conference in Lisbon today, regulation of the banking sector was one of the topics addressed by APB president Vítor Bento and deputy governor of the Bank of Portugal Clara Raposo.
According to Vítor Bento, there are excessive requirements, both European and Portuguese, on Portuguese banks, undermining their competitiveness with their peers and other operators in the financial sector.
According to the president of the association representing the main banks, excessive regulation and bureaucracy undermine "competitiveness and social welfare" and promote a "culture of excessive risk aversion".
Vitor Bento criticised the application of "punitive requirements" such as contributions to the Resolution Fund, which are added to the European Resolution Fund, or taxes on the sector.
The APB president also said that risk weighting for Portuguese banks' assets requires them to hold more capital, considering that this indicates that "the capital of Portuguese banks is worth less to European regulators than that of other banks in other countries".
In this regard, the president of the banking association insisted that this capital, to attract investors, must be properly governed, with profits.
For the Bank of Portugal, regulation and supervision "have allowed banks to be more resilient" and are now better prepared for any crises.
The deputy governor of the BdP, Clara Raposo, considered that the banks' current results show that they have managed to cope with the demands and generate profits.
Still on the current situation and bank profits, Clara Raposo said that, in the current climate of uncertainty, it is even more important for banks to "know how to invest the profits accumulated in recent years".
She also recommended that entities "remain prudent in setting up impairments and preserving capital", not least because a year of lower profits is expected due to the continued gradual decline in interest rates.
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