Bank of Portugal Vice-Governor Luís Máximo dos Santos, the Resolution Fund Chief Through the Novo Banco Years, Departs on 31 October With No Successor Named
The vice-governor who chaired the Resolution Fund through Novo Banco's rescue and sale leaves the Bank of Portugal on 31 October, four months after his term ran out. No replacement has been named, and the choice goes through a parliamentary hearing first.
Luís Máximo dos Santos, vice-governor of the Banco de Portugal (Bank of Portugal) and the official most closely tied to the public support for Novo Banco, leaves the central bank's board on 31 October. The bank's official spokesperson gave Lusa the date on 12 October without giving a reason; Lusa later reported that he is retiring, more than 34 years after joining the bank's staff in 1992. As of 24 October the Government had not named a replacement.
Why he could have stayed, and why he is going
His term had already run out. Resolução do Conselho de Ministros n.º 117-C/2022 (Council of Ministers resolution) renewed his designation as vice-governor for five years with effect from 20 June 2021, so it ended on 20 June 2026. According to Lusa, he could have stayed on until the Government chose a successor; he is leaving at the end of October instead. The Lei Orgânica do Banco de Portugal (the bank's organic law) allows a five-year term, renewable once, so a second renewal was never possible.
He oversaw the bank's legal, resolution and enforcement departments, Lusa reported. Under Article 35 of the organic law the board, on the governor's proposal, shares out those portfolios among the remaining members. He also chairs the Fundo de Resolução (Resolution Fund) and the Fundo de Garantia de Depósitos (Deposit Guarantee Fund).
How a successor is chosen
Article 27 of the organic law sets the procedure. The finance minister, Joaquim Miranda Sarmento, proposes a name; the Assembleia da República's (parliament's) budget and finance committee holds a hearing and issues a reasoned opinion; and the Council of Ministers then designates the new member by resolution, published in the Diário da República (official gazette) with a CV note. The law also requires the board to keep at least 40 percent of each sex. When Lusa asked the finance ministry about the choice on 12 October, it did not reply.
The Novo Banco record
Máximo dos Santos chaired Banco Espírito Santo after its resolution in August 2014, then joined the central bank's board in June 2016 and became vice-governor in 2017. He has led the Resolution Fund since 2017. The fund put 4.9 billion euros into Novo Banco's capital when the bank was created, according to its own financing page, and Lusa puts the later payments under the contingent capital agreement at 3.405 billion euros. On 30 April 2026 the fund announced that the sale of Novo Banco to France's BPCE was complete. The fund received 906 million euros for its 13.54 percent stake, bringing the total it has received for its shareholding to 1.082 billion euros.
In an interview with Jornal de Negócios, republished by the Bank of Portugal, he said the fund could repay the State and the banks between 1.7 and 1.9 billion euros in early 2027. That repayment counts towards debts of 7.5 billion euros, part of which runs to 2043 and the Novo Banco part possibly to 2050. He added that the bank and the Government are working on a fix after the Tribunal Constitucional (Constitutional Court) struck down the rule letting the Bank of Portugal set the banks' additional contributions to the fund.
What it means for you
Nothing changes for depositors. The Deposit Guarantee Fund still covers up to 100,000 euros per depositor at each participating bank, whoever chairs it.
