IMF Staff Country Reports

The Portuguese financial sector has been resilient to shocks over the past decade, reflecting substantial deleveraging after the 2012 European debt crisis. Banks dominate the financial landscape, with strong capital and liquidity buffers and high profitability relative to peers. Credit growth is recovering after years of decline; while risks are currently moderate, ongoing monitoring is needed as the cycle evolves and the Middle East conflict unfolds. The sector has so far been resilient to rising global uncertainty.