Spanish Association

January 16, 2013


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The Bank of Spain in its financial system pump 9 November 2009 doing a bit of memory, when the subprime crisis broke subprime in the US, immediately moved to Europe, but not all countries were affected. Spain was able to stay quite apart from the problems of toxic assets through anti-cyclical regulation applied by the Bank of Spain and which at the time had been very resisted by Spanish banks. Nobody can deny the Bank of Spain the great contribution that has made in pursuit of the Spanish banking system stability, but in recent times, since the entity have emerged statements contributing little to the stability of the financial system but instead generate a destabilizing impact, which makes such statements appear as inopportune and irresponsible. What was what was said from the Bank of Spain? In its latest financial stability report, warned of the existence of eight entities with serious problems due to their exposure to the real estate market. Non-compliant with the unexpected statement, the entity added that two of them have a serious situation.

In these two bodies, the participation of the brick in the investment portfolio reaches 45% (three with an exposure to the sector of between 35% to 45%). As the opinion issued by the Bank of Spain affect all banks, no solid institutions have welcomed see unsuspected. Healthy banking and representation before the existence of entities in problems, the President of the Spanish Association of Banca (AEB), Miguel Martin, made harsh statements calling for not generating wrong incentives: the purpose of supervision is the stability of the system, never the individual entities, which should be able to break. If not, there is no discipline. If there are entities with problems by excessive in certain kinds of investment positions, there are probably responsible for the situation of risk. Is here, and despite the accolades received by the Spanish monetary entity on its performance in the regulation to limit contamination of the financial system with toxic assets, its performance has not been as good as I was thought.