• The regulation regulates Financial Credit Establishments and increases consumer protection, improves legal certainty and promotes competition, facilitating the appearance of regulated operators

The Council of Ministers has approved the Royal Decree of Financial Credit Establishments that develops the legal regime of these entities. The rule favors competition in the granting of loans, maintaining solvency standards, which will favor the orderly growth of credit and will result in greater consumer protection. The Royal Decree develops the regime provided for in Law 5/2015 for the promotion of business financing.

Credit Financial Establishments are companies that are professionally dedicated to the financing of homes and businesses, are subject to rigorous solvency and transparency requirements with customers and are authorized by the Ministry of Economic Affairs and Digital Transformation and supervised by the Bank from Spain.

The approval of the Royal Decree completes the development of the regulations applicable to these entities, allowing them to have their own legal regime adapted to the nature of their business model, but equivalent in terms of security to that established for credit institutions.

The Royal Decree provides greater financial security, prudential control and flexibility to the Financial Credit Establishments, which will facilitate these operators to participate in the market efficiently. It also favors competition and the appearance of regulated operators, which will ultimately improve the protection of citizens.

In addition, the approved norm establishes that the Financial Credit Establishments must have a liquidity buffer to reinforce their solvency, adapt the corporate governance requirements and empower the Bank of Spain to modify the periodicity of the revision of the capital levels.



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