The Bank of Portugal (BdP) clarified this Thursday that the deposit guarantee from Revolut bank, launched in Portugal, is linked to the Lithuanian safeguard mechanism where it is located, and not to the Portuguese Deposit Guarantee Fund.
“Deposits accepted by Revolut Bank UAB in Portugal are carried out by the parent company in Lithuania and are not guaranteed by the Portuguese Deposit Guarantee Fund, but are subject to the deposit protection regime in force in Lithuania,” you can read. If in the clarification released today by the BdP.
This Thursday fintech Revolut launched its bank in Portugal, Italy and France after it started operations in 2020 as a bank in Lithuania, a member state of the European Union, and since then it has a banking license for 18 European countries, with no physical branches. but only digital presence.
In response to Lusa’s questions in writing, Revolut CEO Joe Henegan said the company had 500,000 clients in Portugal and that as of Thursday, those who decide to transfer their money to Revolut Bank “are beginning to protect their holdings. deposit guarantee fund “.
However, BdP clarifies that this mechanism is associated with Lithuania, given that “Revolut Bank UAB is a credit institution with a registered office and authorized in Lithuania”.
Despite this, Revolut Bank UAB “in accordance with the legal conditions has the right to operate in Portugal in the mode of free provision of services.” “In particular, in accordance with the aforementioned regime, Revolut Bank UAB has the right to accept deposits or other repayable funds on the national territory,” the BdP says.
The Central Bank of Portugal recalls that the “members of the Portuguese Deposit Guarantee Fund” are “lending institutions headquartered in Portugal authorized to accept deposits” and “lending institutions headquartered in non-European Union countries in relation to deposits, accepted by its affiliates. in Portugal”.
Lusa asked Banco de Portugal whether Revolut Bank would provide minimal banking services and whether Banco de Portugal would monitor the institution’s behavior (response to complaints and possible sanctions for non-compliance with standards of conduct) or the competence would remain with the Lithuanian authorities. However, there is no answer yet.
