Opinion of the European Central Bank of 14 August 2014 on savings banks attached to mutual associations (CON/2014/64)
Date: 2014-08-14
Institutions: European Central Bank
Subjects: Portugal, association, financial stability, national law, savings bank

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 14 August 2014 

on savings banks attached to mutual associations 

(CON/2014/64) 

Introduction and legal basis 

On  3 July  2014,  the  European  Central  Bank  (ECB)  received  a  request  from  the  Portuguese  Minister  of 

State  and  Finance  for  an  opinion  on  a  draft  decree-law  introducing  the  Mutual  Associations  Code 

(hereinafter the ‘draft decree-law’).  

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning  of  the  European  Union  and  on  the  sixth  indent  of  Article 2(1)  of  Council  Decision 
98/415/EC1,  as  the  draft  decree-law  relates  to  rules  applicable  to  financial  institutions  insofar  as  they 

materially  influence  the  stability  of  financial  institutions  and  markets.  In  accordance  with  the  first 

sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council 

has adopted this opinion. 

1.  

Purpose of the draft decree-law 

1.1  The draft decree-law introduces a new Mutual Associations Code, which is aimed at setting clearer 

rules for mutual associations regarding their financial and budgetary autonomy, the safeguarding of 

their financial stability and the investment and management of their assets. It specifically provides 

for  a  definition  of  savings  banks  attached  to  mutual  associations,  according  to  which  ‘attached 

savings banks’ are credit institutions: (a) with legal personality and organisational, administrative 
and financial independence; and (b) which are governed by specific regulations2. 

1.2  The  Legal  Framework  of  Credit  Institutions  and  Financial  Companies3  (hereinafter  the  ‘Legal 

Framework’) include ‘savings banks’ (caixas económicas) in the list of entities that are classified as 
credit institutions to which the Legal Framework applies4. Savings banks are further regulated by 

Decree-Law No 136/79 of 18 May 1979. In May 2014 four savings banks were registered with the 

Banco  de  Portugal  (BdP)  as  authorised  credit  institutions,  all  of  which  are  attached  to  mutual 

1  

2  
3  
4  

Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
See Article 65 of the draft decree-law. 
Put in place by Decree-Law No. 298/92 of 31 December 1992. 
See Article 3(b) of the Legal Framework.  

 
 
 
 
                                                 
ECB-PUBLIC 

associations.  Taken  together,  attached  savings  banks  represent  6.11 %  of  the  total  assets  of  the 

Portuguese banking sector. 

2. 

Observations 

The  ECB  welcomes  the  introduction  of  legislation  clarifying  the  status  of  savings  banks  attached  to 

mutual  associations.  The  draft  decree-law  provides  for  a  clearer  distinction  between  the  finances  of  a 
mutual association and those of a savings bank attached to it5. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 14 August 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

5  

See Article 65 of the draft decree-law. 

2