{
  "title": "Spain: Financial Sector Assessment Program—Technical Note on Regulation and Supervision of Less Significant Institutions",
  "publication": "IMF Staff Country Reports, August 1, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818",
  "overlayPath": "/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/index.md",
  "summary": "This paper presents a technical note on regulation and supervision of less significant institutions (LSI) as part of Financial Sector Assessment Program in Spain.",
  "sections": [
    {
      "heading": "Executive findings",
      "content": "- The Banco de España’s (BdE) extensive efforts to improve corporate governance of cooperative LSIs are commendable.\n- BdE monitors LSIs’ capital and liquidity levels and exposures to interest rate risk in the banking book (IRRBB).\n- Extensive regulatory requirements and supervisory activities of LSIs’ credit risk have been instrumental in covering credit risk as a key priority.\n- Gaps exist in the related-parties framework that need reform to address shortcomings relative to international standards.\n- Joint work between the BdE and Sepblac presents an opportunity to enhance the risk-based aspects of oversight of anti-money laundering and countering the financing of terrorism (AML/CFT)."
    },
    {
      "heading": "Supervisory priorities and gaps",
      "content": "- Corporate governance\n  - Recommendation: Continue BdE work to improve corporate governance of cooperative LSIs with additional focus on onsite activities.\n- Liquidity risk and IRRBB\n  - Finding: Existing monitoring covers capital, liquidity levels, and exposures to IRRBB.\n  - Recommendation: BdE should further increase supervisory scrutiny of LSIs’ management of liquidity risk and IRRBB.\n- Credit risk and related parties\n  - Finding: Extensive regulatory requirements and supervisory activities have been instrumental in addressing credit risk.\n  - Recommendation: Reform the related-parties framework to address gaps relative to international standards.\n- AML/CFT oversight\n  - Finding: BdE’s joint work with Sepblac should be leveraged.\n  - Recommendation: Use the BdE–Sepblac collaboration to enhance risk-based oversight of AML/CFT."
    },
    {
      "heading": "Policy recommendations (summarized)",
      "content": "- Continue and deepen corporate governance improvements for cooperative LSIs, emphasizing onsite supervisory activities.\n- Increase supervisory scrutiny of LSIs’ liquidity risk management and IRRBB beyond current monitoring.\n- Reform the related-parties framework to close gaps versus international standards and strengthen credit-risk oversight.\n- Enhance the risk-based aspects of AML/CFT oversight through BdE and Sepblac joint initiatives.\n\nSpain: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Less Significant Institutions (August 1, 2024).\n\n---\n\n Content in this bundle\n\n- 1espea2024006-print-pdf — EXECUTIVE SUMMARY\n  - 1espea2024006-print-pdf — EXECUTIVE SUMMARY (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1espea2024006-print-pdf — EXECUTIVE SUMMARY (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/bundle-manifest.json)",
    "Published: August 1, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400285820.002",
    "The Banco de España’s (BdE) extensive efforts to improve corporate governance of cooperative LSIs are commendable.",
    "BdE monitors LSIs’ capital and liquidity levels and exposures to interest rate risk in the banking book (IRRBB).",
    "Extensive regulatory requirements and supervisory activities of LSIs’ credit risk have been instrumental in covering credit risk as a key priority.",
    "Gaps exist in the related-parties framework that need reform to address shortcomings relative to international standards.",
    "Joint work between the BdE and Sepblac presents an opportunity to enhance the risk-based aspects of oversight of anti-money laundering and countering the financing of terrorism (AML/CFT).",
    "Corporate governance",
    "AML/CFT oversight",
    "Continue and deepen corporate governance improvements for cooperative LSIs, emphasizing onsite supervisory activities.",
    "Increase supervisory scrutiny of LSIs’ liquidity risk management and IRRBB beyond current monitoring.",
    "Reform the related-parties framework to close gaps versus international standards and strengthen credit-risk oversight.",
    "Enhance the risk-based aspects of AML/CFT oversight through BdE and Sepblac joint initiatives.",
    "**1espea2024006-print-pdf — EXECUTIVE SUMMARY**"
  ],
  "related": [
    {
      "title": "1espea2024006-print-pdf — EXECUTIVE SUMMARY",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2024/english/1espea2024006-print-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2024/english/1espea2024006-print-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2024/english/1espea2024006-print-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/index.md",
    "json": "/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/index.json",
    "bundleManifest": "/en/publications/cr/issues/2024/08/01/spain-financial-sector-assessment-program-technical-note-on-regulation-and-supervision-of-552818/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-11T15:05:49.257Z"
}