Estonian banking sector

Eesti Pank

The Eesti Pank is the central bank of the Republic of Estonia. The main objective of the Eesti Pank is to contribute to maintaining price stability in the Eurozone, but the bank also performs all of the traditional functions of a central bank. It organizes cash circulation, supports and arranges for monetary transfers between commercial banks, takes part in ensuring financial stability, administers Estonia’s foreign reserves, compiles financial sector and balance of payments statistics and advises the cabinet on matters of economic policy in Estonia and the Eurozone.

Nordic banking groups dominate the banking sector, creating an additional sense of security with regard to financial stability in the region.

Nordic banking groups are dominant among Estonia’s commercial banks, represented by large companies such as SEB, Swedbank, Nordea, Danske Bank.

The fact that the market participants consider Nordic banking groups more secure than other European banks instils a sense of confidence in this region.

SEPA

In February 2014, Estonia transferred to the Single Euro Payments Area (SEPA) payment system.
The goal of the SEPA changeover is to make dealing with money matters more convenient,
strengthen the European internal market, increase competition and effectiveness and
contribute to the region’s economic development.

Internet banking is highly developed

In connection with the widespread Internet penetration in Estonia, online banking has seen rapid development, allowing the vast majority of financial transactions to be executed at a time and place convenient for the customer. No significant distinctions are made between residents and non-residents when opening a bank
account and using other bank services. See more about e-Estonia section.