## Spain: Financial System Stability Assessment

_IMF Staff Country Reports, June 6, 2024_

## Source details

**Canonical URL:** [Spain: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2024/06/06/spain-financial-system-stability-assessment-549927)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/06/06/spain-financial-system-stability-assessment-549927/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/06/06/spain-financial-system-stability-assessment-549927/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/06/06/spain-financial-system-stability-assessment-549927/bundle-manifest.json)

## Bibliographic details
- Published: June 6, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400277887.002

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### Overview and key findings
- The paper presents a report on Financial Sector Assessment Program (FSAP) in Spain.
- The bank-dominated Spanish financial system has shown resilience against shocks.
- Household and nonfinancial corporate sectors have continued to de-lever their balance sheets.
- Nonbank financial intermediation comprises a smaller share of the financial system.
- Systemic risk analyses cover the banking, household, nonfinancial corporates, and real-estate sectors.
- The main risks to financial stability are:
  - an abrupt, significant slowdown in growth;
  - a material, further tightening in financial conditions, including higher interest rates and risk premia;
  - downward pressure on real estate valuations.
- Banks’ ability to cope with asset quality pressures without resorting to deleveraging is inhibited by incumbent solvency buffers that are lower than European peers on a risk-weighted basis.

### Policy recommendations and near-term priorities
- Deploy policies that ensure that significant banks retain a greater share of profits to further raise capital buffers and be better positioned against downside risks.
- Ensure macroprudential and supervisory authorities are well resourced to address emerging risks and challenges and close previously identified gaps in the policy framework.

### Subjects and keywords
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Commercial banks, Credit, Crime, Financial institutions, Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector stability, International organization, Monetary policy, Money
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), cash flow, Commercial banks, core inflation, coverage ratio, Credit, Financial Sector Assessment Program, Financial sector stability, financial system, Global, research support, Tier 1

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## Content in this bundle

- **Spain: Financial System Stability Assessment; IMF Country Report No. 24/154; May 14, 2024**
  - [Spain: Financial System Stability Assessment; IMF Country Report No. 24/154; May 14, 2024 (Markdown version)](/-/media/files/publications/cr/2024/english/1espea2024003.pdf.md){rel="alternate" type="text/markdown"}
  - [Spain: Financial System Stability Assessment; IMF Country Report No. 24/154; May 14, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1espea2024003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/06/06/spain-financial-system-stability-assessment-549927_