All EOS blogs All Spain blogs  Start your own blog Start your own blog 

El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 391. Bank of Spain on transparency and regulation
09 November 2010 @ 10:28

I am sure that they will be welcoming your points of views and experiences within Law 57/68 for further regulation.

Let´s keep the effort up for the benefit of all.

Suggestion: Go sign Keith´s petition!

http://www.bde.es/prensa/intervenpub/diregen/regula/regula150310e.pdf

By José María Roldán

Director General of Banking Regulations 


 
TRANSPARENCY
 

I will conclude by briefly mentioning transparency. The Banco de España has been a pioneer in the 
 
publication of Financial Stability Reports which analyse in detail deposit institutions' exposure and 
 
their position in terms of profitability (profits, it should not be forgotten, are the first line of defence 
against risks) and solvency (the second line of defence).
 
The Boletín Estadístico publishes, on a 
 
quarterly basis, banks', savings banks' and credit cooperatives' exposure to the construction and 
 
development sector and each sector's volume of doubtful assets. Annex IX of Accounting Circular
 
4/2004 sets out provisioning obligations with specific percentages based on a precise time scale.
 
Furthermore, when there is a clarification of the rule which may have a material impact, it is also 
 
published.
 
Can further progress be made in transparency? Yes, there is no doubt that more can be done, but 
 
in the other developed economies better practices in this area are hard to find.
 
What does seem essential is a greater effort by institutions in explaining their strengths, 
 
 
weaknesses, risks and how these risks are mitigated and managed.
 
This is because, in the 
 
 
absence of information, the market may perceive the situation to be worse than it really is. 
 
 
Therefore, it is not a question of transparency for the sake of plain good-heartedness or generosity, 
but rather it is in the institutions' own interest.
 
 
CONCLUSION
 
The combination of a deep crisis and a rapid correction of the excesses of the recent real estate 
 
cycle are setting the priorities for deposit institutions' risk management and
will continue to do so 
 
over the next few years. The Banco de España is aware of this and is exercising its oversight 
 
functions in an extraordinarily complex setting due to the wide variety of collateral underlying the 
 
overall exposure to the construction and development sector.
All of us, both supervisor and 
 
 
institutions, must make greater efforts to explain our priorities, our strategies and our uncertainties 
 
to the market. Thank you very much.
 
 
 
 
 
 
 
Floral Tea-Bar Garden in Santiago de Compostela, Spain by Meddie at Flickr.com
 


Like 0




1 Comments


Keith said:
28 November 2010 @ 22:59

It will be very interesting to see just how transparent the Banco de Espana are when dealing with my 90 page complaint file which I submitted on 13 October 2010. So far they have just been obstructive.

The Banks & Caja's whom the BDE supervise did not follow any Spanish Laws (LEY 57/68), regulations or procedures when accepting billions of Euros of Off-Plan deposit funds.

However, as a victim of the Banks negligence and lack of due diligence, when I file a complaint with the Banco de Espana I am expected to follow every single Law and regulation in the history of Spain!!

Again - all in favour of and to protect the Banks. And totally against the Consumer....

Kind regards

Keith

Only registered users can comment on this blog post. Please Sign In or Register now.




 

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x