At a time of great economic uncertainty, due to Donald Trump’s tariffs and fears of a global recession, can the Portuguese banking hold the “tornado”?
Only in the coming months can you answer the question with more certainties. But, for now, there is the idea that Portuguese banks “have never been so solid”as the Business Journal stresses, vigoring that they have “high levels of capital and reduced mischief.”
These airbags should allow cushion “shocks” and “light collisions”It also analyzes the Economic Journal, also considering statements by the president of the National Union of Boards and Bank Technicians (SNQTB), Paulo Marcos.
The Portuguese banking system is “well capitalized” and has “ability to absorb light to moderate shocks“Note Paulo Marcos, considering that” the ratios are robust enough. “
Donald Trump’s fares go “certainly MAKE MOSSA NALGUNS SECTORS Specific ”, inevitably affecting the national gross domestic product (GDP), but“ there are no reason to think of long -term recessive effects, ”adds Paulo Marcos no.
Portuguese banks are in good health
In the last of Banco de Portugal (BDP), it was noted that Portuguese banks present “favorable indicators in various areas, such as capital, liquidity, quality of assets and profitability“, Reflecting” the structural adjustment effort of the sector in recent years and a favorable economic context. “
“Like the rest of the economy, the bank sector verified a notable adjustmentin terms of liquidity, quality of assets, efficiency and capital ”, also pointed out the BDP report.
The document referred, in particular, to the CET 1 ratio (Common equity tier 1), a metric that measures the ability of a bank to support sudden losses, considering that national banks were better than the eurozone average.
“The Portuguese Common Equity Tier 1 ratio of the Portuguese bank was 17,95% at the end of 2024, “above the 16,2% average in the single currency space ”, analyzes business based on BDP data. “More than double the 7.4% of 2010”.
It had a 20.8% CET 1 at the end of 2024, and the metric was 20.3%.
Another important factor that attests to the good health of Portuguese banks is related to “Significant reduction” in Malparado credithighlights the business.
In 2016, the average Non-Performing Loans ratio, ie the loans where the beneficiary failed to make the payments, reached 18%. Now it is only 2.4%finds the same newspaper.
