## Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management

_IMF Staff Country Reports, August 1, 2024_

## Source details

**Canonical URL:** [Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management](https://www.imf.org/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-financial-safety-net-and-crisis-552838)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-financial-safety-net-and-crisis-552838/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-financial-safety-net-and-crisis-552838/index.json)
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## Bibliographic details
- Published: August 1, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400286094.002

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### 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.*

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## Content in this bundle

- **Executive Summary**
  - [Executive Summary (Markdown version)](/-/media/files/publications/cr/2024/english/1espea2024010-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Executive Summary (PDF)](/-/media/files/publications/cr/2024/english/1espea2024010-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-financial-safety-net-and-crisis-552838_