The Andorra banking sector is one of the principality’s most important industries. That means, in part, that it’s highly regulated and, as a new resident in Andorra, it will be relatively easy to find a bank.
Banking in Andorra is currently controlled by four banking groups:
- Andbank,
- Banc Sabadell d’Andorra,
- Crèdit Andorrà, and
- Mora Banc.
Banks in Andorra focus on serving local clientele with retail bank accounts and private banking services for residents and commercial banking for local businesses.
If you want to apply for residency in Andorra, it’s a requirement to have a local bank account. That means that it’s best to have a bank account open with an Andorran bank before starting the process.
It will also come in handy when paying for all the costs of moving to Andorra and setting up your life here.
What Do You Need to Start Banking in Andorra
The requirements for opening an account here are fairly similar to the rest of the world. To open a bank account in Andorra, you may need to show:- A valid passport or another government-issued national identity card.
- Proof of current address (e.g., a utility bill or bank statement if your proof of ID doesn’t list your current address).
- A reference letter from your current bank.
- Proof of economic activity, both for those who are self-employed and those who work full-time.
- Proof of asset origins.
Original documents are recommended. Without them, any copies may need to be notarized for an Andorran bank to accept them.
How Trustworthy Are Andorra’s Banks?
Generally, three factors go into deciding how safe your deposits are with a particular bank. They are:Solvency: This is a sophisticated calculation that (roughly) boils down to asking what percentage of a bank’s total deposits are held in liquid assets like cash. If everyone tried to withdraw their money from the bank, what percentage of the customers could be satisfied?
Regulation: What due diligence is a bank required to conduct on its customers? What information is it required to report? Are deposits insured by a government agency?
Access to capital: Can a bank draw on funds from a central bank (or other capital-raising tools) to meet its extraordinary needs.
Andorran banks are widely considered to be in better-than-averagestanding in terms of solvency. They maintain higher than average liquidity ratios and exceed the capital requirements set by the Andorran government.