The Banking and Non-Banking Financial Sectors in San Marino

Banking Sector:

The banking sector in San Marino has a high concentration, with the top three banks holding almost three-quarters of total assets and deposits.

Key Features:

• High Concentration: The top three banks account for almost three-quarters of total assets and deposits.
• Foreign Ownership: Six banks are majority foreign-owned, with four owned by foreign holding companies partially owned by Sammarinese individuals.
• Market Share: Foreign-owned banks have slowly increased their overall market share.

Capital Adequacy Ratio (CAR):

The risk-weighted average CAR is 11 percent, but two banks may not meet the required transitional capital adequacy ratio of 7 percent.

Non-Banking Financial Sector:

The non-banking financial sector in San Marino is embryonic and consists mainly of:

• Asset Management Companies: These companies provide various asset management services.
• Foreign Life Insurance Companies: These companies offer life insurance policies to individuals and businesses.
• Small Consumer Lending Companies: These small companies provide consumer lending services.

Key Points:

• The banking sector in San Marino has a high concentration, with the top three banks holding most of the assets and deposits.
• Foreign ownership is significant, but some banks have exposure to risks due to their ties to foreign entities.
• The non-banking financial sector is underdeveloped, consisting mainly of small companies offering various services.