Lisbon, July 22, 2025 (Lusa) - The Competition Authority (AdC) is launching an inquiry into retail banking in Portugal to assess the conditions of competition in the banking market, the regulator announced on Tuesday in an information note available on its website.

According to the information, the purpose of the market consultation is to identify difficulties in comparing banking products, difficulties in contracting banking products and difficulties for customers to switch between banks, as well as possible barriers and limitations to competition in the financial sector.

The AdC said it wanted to define measures to overcome the problems that may be identified in the sector.

"Retail banking is a sector prone to barriers to mobility, given the potential difficulties in researching and comparing different banking and/or financial products, as well as potential difficulties in the account switching process. In situations where banks have a less mobile customer base, competitive pressure is lower and banks' incentives to increase deposit remuneration will be lower," reads the AdC statement on its website.

Specifically with regard to interest on deposits, the Competition Authority (AdC) considers that the rates on new term deposits of up to one year for individuals in Portugal ‘remain less attractive than the average for the eurozone and the term deposit offers are particularly less attractive in the case of the five main banks’.

The chairman of the Competition Authority is being heard this afternoon in the Budget and Finance Committee.

IM/ADB // ADB.

Lusa