Why Portuguese Banks Are Sitting on Over 20% of Deposits and Not Lending: A Deep Dive into the Banking Crisis

oh The banking industry, in its simplest form, corresponds to receiving deposits from customers, with a commitment to return them with interest, at the same time using this money to grant credit to companies or families without money now, expecting to go back. with interest However, Portuguese banking is experiencing a period when deposits are received, but the equivalent of more than 20% of these resources are still unused and have not been converted into credit. There are banks, such as Caixa Geral de Depósitos, where this share is close to 40%.