The key role of Monegasque banks in the development of the real estate market in Monaco

Not sure what the role of banks is? Do you want to know if banks are partly responsible for the spike in activity in the Monegasque real estate market? 

Let's decipher this together! 

Today, Monaco's banks are world-famous. It is now one of the largest banking centres in the world, and more than 42% of the Monegasque banking centre's resources come from foreign funds. 

Each of the banks present in the famous place are top-notch, which is part of what contributes to its power. The banking sector is therefore prosperous in Monaco, but so is real estate... So, what is the role of banks in the Monegasque real estate sector ?

What is the role of banks in the global market?

Let's start by answering this general question. A bank with 5 main functions: 

  • Receive Public Repositories
  • Collect savings 
  • Provide means of payment 
  • Manage payment methods
  • Granting loans

In concrete terms, the bank (as an institution) is an intermediary between you and your creditors. You are the manager of your portfolio, and the bank executes your orders. 

In a way, a banker is a service provider who takes fees (in the form of commissions) to pay themselves.


  How do Monegasque banks influence finance in Monaco?

Now that we know what a bank is for, we can imagine that a banking centre with nearly 40 banks in operation can have a major influence on the course of a local sector. 

Especially if the banks have large portfolios... And this is the case in Monaco. First, let's look at what makes Monegasque banks influential. 


Characteristics of Monegasque banks

It should be noted that the total resources of the banks have been multiplied by 3 in 15 years, which is gigantic. This can be explained in large part by 2 factors: 

-    The reliability of banks 

Indeed, Monegasque banks are reputed to be very reliable, since their resources (as said before) come from all over the world, both from states in Europe, the Middle East, Africa, etc... 

-    The Principality's living environment

In addition to offering a beautiful place to live, Monaco offers a plethora of benefits in kind, in all areas, making it a place that attracts funds... but also expats and real estate investors


The multifaceted role of Monegasque banks in real estate and wealth management.

Banking in Monaco is not just limited to opening accounts or day-to-day transactions. Another key aspect of the banking sector in the Principality is the financing of real estate acquisitions and wealth management.

Most banks in Monaco are private banks and wealth managers that play a crucial role in these areas. They offer customized financing solutions to facilitate the purchase of real estate properties, whether they are primary residences, second homes or rental investments. 

In addition, these banks offer wealth management expertise, including tax and estate planning, as well as investment advice. These services are particularly useful for high-net-worth clients looking to optimize and protect their wealth over the long term. In short, the banking sector in Monaco acts as a true financial partner, capable of supporting you in all aspects of your financial life.


  How do Monegasque banks influence real estate in Monaco?

Finally, banks in Monaco are conducive to investment, which necessarily attracts the wallets of "builders" and those who want to settle there to live. 

In addition, Monegasque banks' systems are becoming more and more secure (particularly to combat money laundering), which has the effect of maximising their reputation for reliability... 

And investor confidence. Monaco therefore seems to be the promised land for investors looking for a quality banking service, and who have high standards.