Andorra’s banking sector is a cornerstone of its economy, contributing approximately 13% to the nation’s GDP.

The industry is characterized by a high degree of specialization in commercial banking, private banking, asset management, and insurance services. As of 2023, the sector comprises three primary banking groups: Andbank, Creand (formerly Crèdit Andorrà), and MoraBanc.

Regulatory environment

The Andorran Financial Authority (AFA), established in 1989, serves as the principal regulator of the financial system, overseeing banking and insurance entities to ensure compliance with international standards.

Other relevant regulators are the Financial Intelligence Unit of Andorra (UIFAND), dedicated to detection, prevention of and the fight against money laundering, terrorist financing; and the State Agency for the Resolution of Banking Entities (AREB), whose goal is managing the resolution processes of banking institutions facing financial difficulties, ensuring the stability and integrity of the Andorran financial system

In recent years, Andorra has made significant strides toward aligning its financial regulations with European norms. Currently, the country is in negotiations for an Association Agreement with the European Union that aims to integrate into the EU’s internal market.

Financial performance

The Andorran banking sector demonstrated robust performance in 2023, with a combined profit of €163 million, marking a 44% increase from the previous year. Customer funds under management reached €74.187 billion, reflecting a 16% growth.

Key financial indicators underscore the sector’s health:

• Return on Equity (ROE): 10.38%
• Return on Assets (ROA): 0.89%
• Common Equity Tier 1 (CET1) Solvency Ratio: 17%
• Liquidity Coverage Ratio (LCR): 228.33%

Commercial banks in Andorra

Andorra’s commercial banking sector has undergone significant evolution, marked by recent strategic mergers. As of today, the only commercial banks operating in the Principality are three: Andbank, Creand (formerly Crèdit Andorrà), and MoraBanc.

Andbank

Established in 2001 through the merger of Banc Agrícol i Comercial d’Andorra (founded in 1930) and Banca Reig (established in 1956), Andbank has its roots deeply embedded in Andorra’s banking history.

In November 2022, Andbank introduced MyAndbank, a fully digital banking platform designed exclusively for residents of the Principality and especially aimed at the youngest. This platform offers a range of features, including integration with Bizum (a Spanish mobile payment solution enabling instant and free transfers, like Venmo or Cash App) and the capability to perform domestic and international transfers without associated fees.

Andbank is the Andorran bank with the greatest international projection:

• Europe: besides Andorra, it has presence in Spain, Luxembourg, and Monaco.
• Americas: operations in Brazil, Mexico, Panama, Uruguay, and the United States (Miami).
• Middle East: established in Israel.

Creand

Originally founded as Crèdit Andorrà in 1950, the bank expanded its footprint by acquiring the Andorran subsidiary of CaixaBank in 2005. This strategic move bolstered its position in the local market. In 2023, Crèdit Andorrà rebranded itself as Creand, unifying its identity across all operating regions.

In a strategic move, in 2022 Creand acquired 100% of VallBanc’s share capital, at that time the fourth bank in Andorra, integrating approximately €1.9 billion of business volume.

Creand has a presence in Spain, Luxembourg, United States and Panamá.

MoraBanc

Tracing its origins to 1958, MoraBanc has consistently evolved, focusing on both retail and private banking services, and acquiring other prominent firms in the sector.

BancSabadell d’Andorra (BSA) was a joint venture between Spain’s Banco Sabadell and local Andorran shareholders. In July 2021, Banco Sabadell agreed to sell its majority stake in BSA to MoraBanc as part of Banco Sabadell’s strategic plan to focus on its core operations within Spain. The acquisition resulted in a combined management of over €10.5 billion in customer resources and €1.6 billion in credit investments.

In November 2024, MoraBanc expanded its international presence by acquiring a majority stake in Tressis Sociedad de Valores SA, a Spanish securities firm. This acquisition increased MoraBanc’s assets under management to €18 billion, with around €8 billion from Andorra and €10 billion from international operations.

MoraBanc is popular for having a great digital experience, both on the web and in the app.

Services offered

Andorran commercial banks provide a comprehensive suite of services to both individual and corporate clients:

• Retail banking: services include current and savings accounts, fixed-term deposits, personal and mortgage loans, and payment cards (credit and debit). The banks have embraced digitalization, offering electronic and mobile banking platforms to enhance customer convenience.
• Private banking and wealth management: catering to high-net-worth individuals, these services encompass investment portfolio management, estate planning, and personalized financial advisory. The banks employ a team of experts to provide tailored solutions that align with clients’ financial goals.
• Corporate banking: for businesses, Andorran banks offer services such as business accounts, commercial loans, asset financing, and treasury management. They also provide specialized advisory services to support business growth and international expansion.
• Insurance services: through their insurance arms, banks offer a range of products, including life, health, and property insurance, ensuring comprehensive financial protection for their clients.

International banks

Andorran residents can also make use of multiple international digital neobanks such as Wise or Revolut, which offer bank account details in multiple currencies, lower fees and better user experience.

Although these banks do not have an official presence in the country, they do accept Andorran users and provide them with a European IBAN (Belgian, Spanish…).

In practice, in Andorra it is common to combine one or two local banks (necessary for some procedures with the public administration) with a foreign digital neobank.

Opening a bank account in Andorra

Main article: Opening a bank account in Andorra

If you are thinking of moving to Andorra, it is advisable to start the process of opening a bank account as soon as possible, even before obtaining residency.

You can contact us to tell us about your situation and we will advise you on the best bank for your needs, and we will put you in contact with a bank manager who will speed up the opening of your account.

Sources

• https://www.andorranbanking.ad/en/centre-financer/key-figures/
• https://www.afa.ad/ca/coneix-lafa/objectius-i-funcions
• https://www.uifand.ad/en/uifand-en/what-is-the-uifand
• https://www.areb.ad/que-es-l-areb