Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management
IMF Staff Country Reports, August 1, 2024
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- Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management
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Bibliographic details
- Published: August 1, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400286094.002
Executive summary and context
- This paper examines a technical note on financial safety net and crisis management as part of Financial Sector Assessment Program in Spain.
- Spanish authorities have made good progress in establishing an effective crisis management and resolution regime.
- Publication date: August 1, 2024.
- Series: Country Report No. 2024/265, Issue: 265, Volume: 2024, Pages: 43.
- DOI: https://doi.org/10.5089/9798400286094.002
- ISBN: 9798400286094
- ISSN: 1934-7685
- Stock No: 1ESPEA2024010
Key findings
- Progress achieved:
- Spanish authorities have made good progress in establishing an effective crisis management and resolution regime.
- Institutional gap identified:
- The Spanish authorities should integrate bank resolution authority for planning and execution in one institution.
- Rationale: Integration would ensure that the national resolution authority responsible for implementing orderly resolution actions has control over the primary levers necessary to achieve its objectives.
- Liquidity in resolution:
- The Spanish authorities need to establish a framework for addressing liquidity needs in resolution.
- Crisis coordination:
- Spanish authorities should continue to enhance cross-authority crisis coordination arrangements.
- This should include formalizing existing crisis management practices.
- Prioritization recommended: agree a cross-authority crisis simulation exercise strategy.
- Operational flexibility for the Executive Resolution Authority:
- Spain’s Executive Resolution Authority should have the flexibility, where possible, under national procurement legislation to depart from procurement rules in a crisis scenario to appoint external advisory support including independent valuers at short notice.
Policy recommendations and implementation priorities
- Institutional integration:
- Integrate bank resolution authority for planning and execution into a single institution to centralize control over resolution levers.
- Liquidity framework:
- Establish a formal framework to address liquidity needs during resolution processes.
- Cross-authority coordination:
- Enhance and formalize cross-authority crisis coordination arrangements.
- Develop and agree on a cross-authority crisis simulation exercise strategy to prioritize preparedness.
- Procurement and advisory flexibility:
- Ensure Spain’s Executive Resolution Authority has legal flexibility, where possible under national procurement legislation, to appoint external advisory support (including independent valuers) rapidly in crisis scenarios.
Subjects and keywords (as provided)
- Subjects: Bank resolution, Bank resolution framework, Crisis management, Crisis resolution, Financial crises, Financial sector policy and analysis, Financial sector stability
- Keywords: authority crisis coordination, Banco de España, Bank resolution, Bank resolution framework, bank Resolution planning, Crisis management, Crisis resolution, directorate General insurance, Financial sector stability, Global, IMF STX staff, resolution execution
International Monetary Fund. Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management. IMF Staff Country Reports 2024, 265 (2024), accessed via the source content provided.
Content in this bundle
- Executive Summary