• The current Financial Stability Board (CESFI) will become a macroprudential authority with strengthened powers. The authority will be called the National Financial Stability Authority (ANESFI) and will be composed of representatives of the Ministry of Economy and Business, Bank of Spain and CNMV
  • With its creation Spain complies with the recommendation made in 2011 by the European Systemic Risk Board (ESRB)
  • The purpose of ANESFI will be the macroprudential supervision of the financial system to prevent and mitigate systemic risk and, consequently, its possible negative effects on economic growth
  • ANESFI will have among its functions risk analysis, the issuance of opinions and alerts and the formulation of recommendations
  • In parallel, a reinforcement of the macroprudential instruments of the Bank of Spain will be promoted

The Financial Stability Board (CESFI) has approved at the meeting held today to initiate the procedure for the creation of a national macroprudential authority. Said authority shall be called the National Financial Stability Authority (ANESFI) and shall be composed of representatives of the Central Administration (Ministry of Economy and Business), the Bank of Spain and the National Securities Market Commission (CNMV).

The new macroprudential authority will have the nature of a collegial body, without its own legal personality and attached to the Ministry of Economy and Business, although with functional independence.

With the creation of ANESFI, Spain complies with the recommendation of the European Systemic Risk Board (ESRB) which, in 2011, urged the states of the European Union to create national macroprudential authorities. Spain is one of the few countries that do not yet have this authority.

The Minister of Economy and Business, Nadia Calviño, has highlighted, in addition to the importance of this agreement, the speed with which the work has been carried out: “In my first appearance at the Economy Commission of Congress on July 10, I I promised to convene the Financial Stability Council, which had not met since 2013. From that first meeting came the commitment to promote a macroprudential authority in Spain. In just four months we have made significant progress in its design, functions and composition, which shows the commitment of the Ministry in promoting this initiative and the excellent collaboration with the Bank of Spain and the CNMV ”.

For its part, the governor of the Bank of Spain has welcomed this new body: “the creation of the macroprudential authority shows the willingness of all the institutions involved to comply with the recommendations of the ESRB and to strengthen financial stability in Spain . As a complement to the creation of this new authority, the Bank of Spain significantly expands its macroprudential instruments in order to better control the credit cycle and the development of financial bubbles in the future, which will result in more stable and sustainable economic growth ”.

The president of the National Securities Market Commission, Sebastián Albella, said that “from the CNMV we value the creation of the new macroprudential authority, especially that the importance of capital markets from the point of view has been taken into account in its design in view of financial stability, one of the lessons of the last economic crisis ”.

Structure and functions

The new authority will have the purpose of macroprudential supervision of the Spanish financial system, with the objective of contributing to the prevention or mitigation of systemic risk.

Likewise, it may carry out risk analysis and issue opinions and / or alerts on all aspects that may pose a systemic risk that affects financial stability. It will also have the power to make recommendations for the adoption of concrete measures when risks that threaten financial stability are anticipated. A procedure for monitoring compliance with these recommendations is established, which, if deemed desirable, will be publicized.

Although the application of macroprudential tools will remain the responsibility of the supervisory authorities, they must inform ANESFI beforehand. The proposal for the creation of this authority includes a list of measures that supervisors must previously inform the different bodies that make up the Financial Stability Committee.

The proposal for the creation of a macroprudential authority incorporates new powers for the Bank of Spain, among which are those related to macroprudential tools such as the sector's countercyclical capital cushion, the establishment of maximum limits to the sectoral concentration of credit exposures and related to the conditions of granting of credits, as well as the consideration of the Bank of Spain as the competent authority for the application of Article 458 of Regulation (EU) No. 575/2013 of June 26, 2013

With regard to the structure, the new macroprudential authority will have a Council, composed of the Minister of Economy and Business that will exercise the functions of president, the governor of the Bank of Spain, who will be the vice president, the deputy governor of the Bank of Spain , the president and vice president of the CNMV, the Secretary of State for Economy and Business Support and the general director of Insurance and Pension Funds.

It will also have a Technical Committee, which will be formed by nine representatives of the ANESFI member bodies and will be chaired by the deputy governor of the Bank of Spain. The Committee will meet on a quarterly basis and will have among its functions to carry out and submit to the Council its analysis on the current situation in terms of financial stability, propose the adoption of opinions, alerts and recommendations and the follow-up of international forums in which debate is held. macroprudential policy, with special attention to measures taken in other jurisdictions that may have implications for Spain. Other institutions related to financial stability may be invited to participate in the meetings.

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On an annual basis, ANESFI will submit a report to the Courts of a public nature, in which the main risks for financial stability, the binding macroprudential measures adopted and the recommendations and notices issued will be analyzed.

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