• The regulatory framework of credit institutions is adapted to the new requirements of integrated supervision of the ECB
  • Designs the capital buffer system that credit institutions in Spain will have to comply with

The Council of Ministers today approved the Royal Decree that develops the Law of Ordination, Supervision and Solvency of credit institutions. This standard transposes the European Directive 2013/36, which is part of the CRD IV package on the solvency regulations of credit institutions (Basel III Agreement), into our legal system.

The Directive requires for its transposition the substantial modification of various national regulations. The Government has already taken steps this legislature for the adaptation to our legal system of the most urgent questions of the CRD IV package through the Royal Decree of urgent measures for the adaptation of Spanish law to the regulations of the European Union regarding the supervision of solvency of financial institutions of 2013 and the Law of organization, supervision and solvency of credit institutions, approved in June 2014. The Royal Decree approved today supposes the recasting and systematization in a single text of scattered regulations, improving the quality of our regulations banking and adapting it to all the requirements derived from the implementation, last November, of the Single European Supervision Mechanism.

The new regulation consists of three titles from which it develops the aspects of the law related to the requirements for access to activity, solvency and supervision of credit institutions:

  1. Access requirements. In this part, the subjective operating conditions of banks in Spain are developed: authorization procedure, significant participation regime, suitability and corporate governance requirements
  2. Solvency of credit institutions. In the second title of the RD, the elements that the entities must consider when carrying out the internal capital self-assessment and to design their mechanisms for risk management are collected. In addition, it includes the capital buffer system, which may be set by the European Central Bank (ECB) or by the Bank of Spain.
  3. Supervision of credit institutions. The scope of the supervisory function of the Bank of Spain and the framework for collaboration with other supervisors are developed, in particular with the ECB within the Single European Supervisory Mechanism.

Additionally, the distribution of representatives of the adhered entities is established in the Management Commission of the Deposit Guarantee Fund in accordance with the provisions of Royal Decree-law 16/2011. The number of representatives of the different associations will be proportional to the volume of deposit of their represented.

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