- The Royal Decree adopted today regulates its creation, legal regime, structure, functions and powers
- This rule together with the Royal Decree-Law approved in December, which provided the supervisory bodies with new tools, complete the institutional reform of the macroprudential supervision system
- With its creation Spain has the appropriate instruments to prevent possible risks that may affect financial stability and complies with the recommendation made in 2011 by the European Systemic Risk Board
The Council of Ministers has approved a Royal Decree establishing the Macroprudential Financial Stability Council Authority (AMCESFI), as the body responsible for preventing and mitigating systemic risk for financial stability.
The norm establishes the structure, legal regime, functions and faculties that this collegiate body has, attached to the Ministry of Economy and Business.
With the creation of AMCESFI and the provision of new tools to sectoral supervisors, which was carried out last December through a Royal Decree-Law, the institutional reform of the macroprudential supervision system ends.
This reform, which has been carried out in just eight months thanks to the commitment and collaboration of the Bank of Spain, the National Securities Market Commission (CNMV) and the Ministry of Economy and Business, will improve macroprudential coordination and allow Spain to have instruments oriented to prevent possible systemic risks. Likewise, the recommendations made in 2011 by the European Systemic Risk Board (ESRB) are complied with.
AMCESFI structure and functions
In the design of AMCESFI, two relevant aspects must be highlighted: its independence and transversal character. The management of macroprudential tools is left to the sector supervisors, respecting their scope of action and expert knowledge, although they must communicate in advance to AMCESFI their intention to activate, recalibrate or deactivate any of them.
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.
Likewise, it will have a Technical Committee, which will be formed by nine representatives of the member bodies of the authority and will be chaired by the deputy governor of the Bank of Spain.
Both bodies provide for the possibility that representatives of other public institutions related to financial stability attend the meetings, as experts, with voice but without vote.
AMCESFI has among its functions and faculties the analysis of possible systemic risk factors; the issuance of opinions; the publication of alerts on any aspect that may affect financial stability and the formulation of opinions to sector supervisors urging the adoption of concrete measures.
On an annual basis, the Macroprudential Authority shall submit to the Cortes a public report, in which the main risks for financial stability, the binding measures adopted and the recommendations and notices issued will be analyzed.
New macroprudential tools
In order to improve the prevention of possible systemic risks, last December a Royal Decree-Law was approved, giving the Bank of Spain, the National Securities Market Commission and the General Directorate of Insurance and Pension Funds of New macroprudential tools.
Among others, it includes the possibility of establishing countercyclical capital cushions, limits on the sectoral concentration of risks and the granting of loans depending on the value of the guarantee or the borrowing capacity of companies and individuals.