IMF Staff Country Reports

Spain: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management

Publication Date:

August 1, 2024

Electronic Access:

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Summary:

Spanish authorities have made good progress in establishing an effective crisis management and resolution regime. The authorities have supported the Single Resolution Board (SRB) in setting resolution plans for Significant Institutions (SIs) and agreed on resolution plans for Less Significant Institutions (LSIs), enhanced cross-authority coordination, developed crisis management manuals, and participated in crisis simulation exercises. There have been improvements in the resolvability of Spanish banks, for instance, with respect to their compliance with the European Minimum Requirement for Own Funds and Eligible Liabilities (“MREL”). The Spanish authorities have also improved their internal and inter-authority crisis preparedness. However, further work is required to enhance the operational capacity of the resolution regime. The Banco Popular resolution in 2017 highlighted that an adequately staffed resolution authority able to cope with fast burn cases, internally and through the capacity to engage external parties at short notice, is essential to maintaining financial stability.

Series:

Country Report No. 2024/265

Subject:

Asset and liability management Bank resolution Bank resolution framework Crisis management Crisis resolution Financial crises Financial sector policy and analysis Financial sector stability Lender of last resort Liquidity

Frequency:

regular