Spain: Financial Sector Assessment Program—Technical Note—Supervision of Spanish Banks
IMF Staff Country Reports, November 13, 2017
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- Spain: Financial Sector Assessment Program—Technical Note—Supervision of Spanish Banks
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Bibliographic details
- Published: November 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484327241.002
Summary and central findings
- This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program (FSAP) for Spain in the area of banking supervision.
- Banking regulation and supervision of Spanish banks have improved considerably since the 2012 FSAP.
- Swift and determined action addressed the major weaknesses that led to the accumulation of imbalances in the banking system in the period leading to the crisis.
- Actions to address misclassification and underprovisioning of assets have shown very good progress, but oversight must continue.
- Further reforms are needed because the transformation of the banking supervision function is far from complete.
Progress since the 2012 FSAP
- Improvement in banking regulation and supervision of Spanish banks has been considerable since the 2012 FSAP.
- Swift and determined actions have addressed major weaknesses that contributed to pre-crisis imbalances.
- Notable progress made on misclassification and underprovisioning of assets.
Remaining weaknesses and recommended priorities
- The transformation of the banking supervision function is described as "far from complete."
- Continued oversight is required to sustain progress on asset classification and provisioning.
- Further reforms are needed to complete the supervisory transformation (specific reform measures are discussed in the Technical Note).
Subjects and keywords
- Subject: Bank supervision, Banking, Cooperative banks, Corporate governance, Credit, Credit risk, Financial institutions, Financial regulation and supervision, Loans, Money
- Keywords: bank auditing, bank merger, Bank supervision, BdE inspection team, capital base, central bank, Cooperative banks, CR, Credit, Credit risk, data protection authorities, EU bank, Europe, general obligation, Global, interest rate, internal audit, ISCR, Loans, management body, resolution plan, return on equity, risk profile, supervision schedule
Source: Spain: Financial Sector Assessment Program-Technical Note-Supervision of Spanish Banks, November 13, 2017.
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- Country Report