IMF Staff Country Reports

Spain: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Less Significant Institutions

Publication Date:

August 1, 2024

Electronic Access:

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Summary:

The FSAP undertook a targeted review of the banking regulation and supervision of Spain’s Less Significant Institutions (LSIs). The review is part of the 2024 Financial Sector Assessment Program (FSAP) of Spain. In scoping this targeted review, the IMF team took account of the recommendations of the previous FSAP for Spain (2017) and relevant Euro-Area (EA) and global regulatory and market developments. The review covered: (i) the supervisory powers and independence of Banco de España (BdE); (ii) the supervisory approach and tools for LSIs; (iii) the oversight of LSIs’ governance and risk management; (iv) the regulation and supervision of LSIs’ key risks (including credit risk and problem assets, related party transactions, funding and liquidity risks, and interest rate risk in the banking book); and (v) the oversight approach with respect to LSIs’ climate-related financial risks. The findings and recommendations of this technical note are based on an analysis of the regulatory framework in place and supervisory practices employed as of October 2023.

Series:

Country Report No. 2024/261

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Credit risk Crime Financial regulation and supervision Liquidity risk

Frequency:

regular