Spain: Financial System Stability Assessment

IMF Staff Country Reports, October 6, 2017

Source details

This paper assesses the stability of the Spanish financial system as a whole.
Spain’s banking system has been steadily progressing since the last Financial System Assessment Program.
The authorities have made a significant reform effort.
Together with the economic recovery, and support by the European Central Bank’s accommodative policies, the banking system has strengthened its solvency and advanced in reducing nonperforming loans.
It is critical to keep the reform process moving and to build on the advances made during 2012–16.
Completing the restructuring of bank balance sheets is a priority.
Enhanced monitoring and supervisory attention to interest rate and liquidity risks are also merited.

Banking system strength improved due to policy reforms, economic recovery, and ECB accommodative policies.
Solvency of banks has been strengthened.
Nonperforming loans have been reduced.
Restructuring of bank balance sheets remains incomplete and is a priority.
Interest rate and liquidity risks require enhanced monitoring and supervisory attention.

Subject areas: Bank resolution framework, Banking, Cooperative banks, Credit, Financial crises, Financial institutions, Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector stability, Insurance, Money, Systemic risk.
Keywords: balance sheet, Banco de España, bank assets, bank consolidation, bank exposure, bank privatization, bank profitability, Bank resolution framework, banking group, bond market risk, bridge bank, capital loss, CR, Credit, debt market, ECB guidance, Financial sector stability, fixed income, Global, Insurance, insurance market, ISCR, market data analysis, markets authority, negative equity, pillar II requirements, private sector, problem assets, senior debt, surveillance indicator, Systemic risk.

International Monetary Fund. Spain: Financial System Stability Assessment. October 6, 2017.