## Spain: Financial Sector Assessment Program: Technical Note: Nonfinancial Equity Investments of Spanish Credit Institutions

_IMF Staff Country Reports, June 14, 2006_

## Source details

**Canonical URL:** [Spain: Financial Sector Assessment Program: Technical Note: Nonfinancial Equity Investments of Spanish Credit Institutions](https://www.imf.org/en/publications/cr/issues/2016/12/31/spain-financial-sector-assessment-program-technical-note-nonfinancial-equity-investments-of-19338)

## Other formats

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## Bibliographic details
- Published: June 14, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451812176.002

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### Summary
- This note assesses the risk profile of the nonfinancial equity investments of Spanish credit institutions (CIs), based on a market-risk approach.
- It assesses the main features of the situation and indicates the problems of CIs’ nonfinancial equity investments.
- It presents the evolution of nonfinancial equity investments, and their importance for the economy.
- It analyzes using the value-at-risk (VaR) approach.
- It recommends enhancing of risk management practices and surveillance with regard to CIs with a significant nonfinancial equity investment, and encourages those CIs to adopt the market-based approach.

### Key analysis and findings
- Focus: nonfinancial equity investments of Spanish credit institutions (CIs).
- Methodology: market-risk approach, including analysis using the value-at-risk (VaR) approach.
- Issues identified: problems associated with CIs’ nonfinancial equity investments (the note "indicates the problems" of these investments).
- Coverage: evolution of nonfinancial equity investments and their importance for the economy.

### Policy recommendations
- Enhance risk management practices with regard to CIs with a significant nonfinancial equity investment.
- Strengthen surveillance of CIs that hold significant nonfinancial equity investments.
- Encourage CIs with significant nonfinancial equity investments to adopt the market-based approach.

### Subject areas and keywords
- Subject: Banking, Basel II, Commercial banks, Econometric analysis, Financial institutions, Financial markets, Financial regulation and supervision, Stock markets, Stocks, Vector autoregression
- Keywords: Basel II, capital absorption, Commercial banks, CR, credit institution, equity, equity exposure, equity investment, equity method, equity volatility, Europe, ISCR, merchant banking activity, savings bank, Stock markets, Stocks, Vector autoregression

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## Content in this bundle

- **Cr06214**
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  - [Cr06214 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06214.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/spain-financial-sector-assessment-program-technical-note-nonfinancial-equity-investments-of-19338_