Portugal: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Less Significant Institutions

International Monetary Fund

No 2026/204, IMF Staff Country Reports from International Monetary Fund

Abstract: Banco de Portugal (BdP)’s framework for supervising Less Significant Institutions (LSI) is robust and aligned with Single Supervisory Mechanism (SSM) methodologies; its continuous effectiveness will depend on BdP’s ability to sustain supervisory capacity. Alongside SSM membership, BdP has strengthened supervision through structured SREP assessments, broader and improved on-site inspections, digital tools for consistency and traceability, and stronger oversight of core risks. A commitment to ongoing improvement and collaboration, increasingly evident over the past decade, has driven these advancements, supported by a collegial approach to decision-making, established delegations, transparent internal communication, and integrity. Portugal illustrates how SSM methodologies have strengthened national supervisory practices. At the same time, structural pressures are emerging as BdP’s mandates expand under DORA, MiCAR, and the forthcoming AI Act: high turnover is straining BdP’s ability to retain and attract mid-career supervisors and risk specialists, particularly in ICT risk, the main short-term threat to supervisory effectiveness.

Pages: 27
Date: 2026-07-27
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=578119 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2026/204

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().