Regulatory policy stance

Evento: European Financial Services Round Table (EFR) meetin

10 years after the financial crisis. What have we learned and to what end

Evento: Round table. Organizado por: Universidad de Navarr

Solvencia bancaria, riesgo de crédito y regulación pública: El caso de la provisión estadística española

El objetivo de este trabajo es explicar el funcionamiento de la provisión estadística para insolvencias, recientemente creada por el Banco de España, y su utilidad como instrumento para una adecuada regulación pública de las entidades de depósito. Se justifican las razones por las que se ha implantado esta provisión en España y el interés que puede tener para atemperar el impacto que los ciclos financieros tienen sobre el ciclo real de la economía así como su relevancia en el marco del nuevo Acuerdo de Capital de Basilea. Classification-JEL : G18, G21.regulación bancaria, riesgo de crédito, provisión estadística, solvencia bancaria.

Spanish dynamic provisions: main numerical features

Artículo de revistaThis article contains a detailed numerical analysis of the Spanish dynamic provision, both at the whole system level and at the level of different groups of banks. In general terms, the maximum amount of general or dynamic provisions accumulated at the peak of the lending cycle was almost €26 billion. In relative terms, a coverage of 1.1% of the credit portfolio and of almost 1% of total assets was achieved at that peak. Currently, general provisions are almost depleted to prove that they were designed as an automatic mechanism to be used as a macro-prudential countercyclical tool. In terms of risk weighted assets, dynamic provisions reached 1.5% of credit risk weighted assets at the peak of the cycle which is around half way from the maximum countercyclical capital buffer designed for Basel III. The fact that MoU group 1 and group 2 banks had accumulated at its peak €7,000 million euro of general or dynamic provisions has reduced in an equivalent amount the public capital injections required by these banks. The amount saved in this counterfactual exercise is close to 1% of the Spanish GDP

Macroprudential policy : objectives, instruments and indicators

Este documento presenta el marco analítico desarrollado recientemente por el Banco de España para la puesta en marcha de su política macroprudencial. La metodología descrita incorpora un amplio conjunto de indicadores que permiten realizar un seguimiento de los riesgos macroprudenciales a través de un mapa de riesgos. El marco servirá de soporte para definir la orientación general de la política macroprudencial del Banco de EspañaThis document presents the analytical framework recently developed by the Banco de España for the implementation of its macroprudential policy. The methodology described uses a broad set of indicators that enables macroprudential risks to be monitored through risk mapping. This framework will provide support for the Banco de España’s broad macroprudential policy stanc

Spanish boom-bust and macroprudential policy

Artículo de revistaIn this paper we review the experience of the last Spanish boom and bust to cast some reflections on macroprudential policy. These reflections take place in a country, Spain that is a (relatively small) member of a larger monetary union, which also has a single banking microsupervisor as well as a central bank, the ECB that can top-up national macroprudential decisions. Beyond the euro zone, the experience of the Spanish lending boom-bust maybe also interesting for other policy makers, with a full array of tools to tame the lending cycle

Presentation of the book The countercyclical provisions of the Banco de España, 2000-2016

Artículo de revistaThe first Conference on Financial Stability, jointly organized by the Banco de España and the Centro de Estudios Monetarios y Financieros (CEMFI), was held on 24 and 25 May 2017. The Conference included a panel based on the book “The Countercyclical Provisions of the Banco de España (2000-2016)” devoted to explain the experience at the Banco de España with countercyclical provisions. The Banco de España was a pioneer in developing macroprudential tools by introducing these provisions as early as in 2000. Although not able to counter the strong credit growth in the boom years, they proved effective in smoothing the loan contraction in the first years of the credit downturn and economic recession in Spain. Furthermore, the Spanish provisions were a source of inspiration for the countercyclical capital buffer agreed by the Basel Committee on Banking Supervision in 2010 and can also be considered, with some nuances along the way, the precursor of the expected-loss concept to calculate credit provisions under the IFRS 9. This article summarizes the presentation of the book in the Panel. Sitting on it were Javier Suárez as chair, Jesús Saurina Salas and Carlos Trucharte Artigas, the authors explaining the Banco de España’s countercyclical instrument and the discussants Pedro Duarte Neves and Richard Herring

Presentation of the First Conference on Financial Stability and of the panel The countercyclical provisions of the Banco de España, 2000-2016

Artículo de revist