Spain: Financial Sector Assessment Program: Technical Note: Nonfinancial Equity Investments of Spanish Credit Institutions

June 14, 2006

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Format: Chicago

Spain: Financial Sector Assessment Program: Technical Note: Nonfinancial Equity Investments of Spanish Credit Institutions, (USA: International Monetary Fund, 2006) accessed November 21, 2024

Summary

This note assesses the risk profile of the nonfinancial equity investments of Spanish credit institutions (CIs), based on a market-risk approach. It assesses the main features of the situation and indicates the problems of CIs’ nonfinancial equity investments. It presents the evolution of nonfinancial equity investments, and their importance for the economy. It analyzes using the value-at-risk (VaR) approach and recommends enhancing of risk management practices and surveillance with regard to CIs with a significant nonfinancial equity investment, and encourages those CIs to adopt the market-based approach.

Subject: Banking, Basel II, Commercial banks, Econometric analysis, Financial institutions, Financial markets, Financial regulation and supervision, Stock markets, Stocks, Vector autoregression

Keywords: Basel II, Capital absorption, Commercial banks, CR, Credit institution, Equity, Equity exposure, Equity investment, Equity method, Equity volatility, Europe, ISCR, Merchant banking activity, Savings bank, Stock markets, Stocks, Vector autoregression

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2006/214
Stock No:

1ESPEA2006005
ISBN:

9781451812176
ISSN:

1934-7685

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