Spain: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight Framework and Macroprudential Policy
IMF Staff Country Reports, November 13, 2017
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- Spain: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight Framework and Macroprudential Policy
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Bibliographic details
- Published: November 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484327050.002
Key findings
- Macroprudential oversight for banking is a shared responsibility between Banco de España (BdE) and the European Central Bank.
- The macroprudential policy stance appears broadly appropriate.
- BdE has put in place a framework for calibrating capital buffers.
- The countercyclical capital buffer is currently at zero given that a new financial cycle upturn has not started and a still-negative credit gap and weakly recovering housing prices.
- The existing macroprudential toolkit would benefit from expansion, particularly to include more effective tools to deal with risks associated with real estate exposures.
Macroprudential policy stance and tools
- Current stance: broadly appropriate.
- Capital buffer framework: BdE has a calibration framework in place.
- Countercyclical capital buffer: currently at zero.
- Indicators cited for buffer stance: absence of a new financial cycle upturn, a still-negative credit gap, and weakly recovering housing prices.
- Toolkit gaps: limited instruments to address real estate exposure risks; need for expansion.
Governance and institutional responsibilities
- Macroprudential oversight is a shared responsibility between BdE and the European Central Bank.
Policy recommendations (implicit from findings)
- Maintain coordination between BdE and the European Central Bank in macroprudential oversight.
- Continue using the BdE framework to calibrate capital buffers in line with cycle and housing market developments.
- Expand the macroprudential toolkit to include more effective measures aimed at risks from real estate exposures.
Subject areas and keywords
- Banking
- Financial sector policy and analysis
- Financial sector stability
- Macrofinancial analysis
- Macroprudential policy
- Systemic risk
- Systemic risk assessment
- Keywords from source: BdE circular, BdE governor, Comisión Nacional del Mercado, conduct market surveillance, covered bond, CR, ECB funding, financial market, Financial sector stability, Global, investment funds, ISCR, Macrofinancial analysis, Macroprudential policy, market activity, markets authority, Systemic risk, Systemic risk assessment, systemic risk indicator
Spain: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight Framework and Macroprudential Policy (IMF Staff Country Reports, November 13, 2017).
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