Banking Law in SpainUpdated on Saturday 18th June 2016
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The banking system in Spain has gone through several restructuring processes, starting with 2008. The Spanish banking system is fully integrated with the European financial directives, as the country is a member state of the European Union (EU). In 1999, Spain became a part of the European System of Central Banks (ESCB). As a consequence, all banks in Spain have implemented the regulations of the ESCB in terms of monetary exchange, banknotes issuance or the management of the monetary reserve. Our team of Spanish lawyers can provide assistance on the regulatory framework applicable to financial institutions in Spain.
Regulatory framework for Spanish banks
Foreign investors who are interested to set up a financial institution in Spain should know that the local environment has been very stable for the last 3 decades, but it is also necessary to know that the banking system has undergone several restructuring processes, which mainly referred to the regulations applicable to equity ratios and risk management.
Spain has changed its legislation to incorporate in its national law the International Financial Reporting Standards (IFRS), which refers to the accountancy rules applicable to banking institutions.
In 2012, the Spanish authorities have imposed the Royal Decree 18/2012, which refers to the obligations of credit institutions providing financial assistance to real estate sector; our team of Spanish attorneys can offer more details on this legislation and its main effects on the local market.
Reforms of the Spanish banking law
Another regulation adopted by the Spanish authorities in 2012 refers to the law 9/2012, which aims at the restructuring of the financial institutions with activities in Spain. The law incorporated international legislation and practices, and it had a positive effect on the targeted companies.
The Fondo de Reestructuration Ordenada Bancaria (FROB), alongside with the Banco de Espana (the National Bank of Spain), were designated as the main bodies handling the restructuring process of the credit institutions.
The above mentioned bodies have also received the right to a wider area of actions to intervene in the bank’s processes.
Businessmen who want to receive more details on the banking law in Spain can contact our Spanish law firm for assistance on the main regulations imposed by the local government.