When Banco de España exercises its conduct and information transparency-related supervisory function, the most immediate objective is to verify compliance with the applicable regulations. However, its long-term goal is to transform institutions’ conduct, steering them towards a genuine culture geared at establishing business models and commercial organisation structures that ensure sound market practices, with a particular focus on the relationship between supervised institutions and their customers. The Banco de España’s conduct-related strategy is structured around two goals:
- To foster a pre-emptive supervisory approach, by strengthening ongoing monitoring of institutions and conduct risks with a potential impact on customers.
- To establish supervisory priorities based on previously identified risk factors and indicators.
The Supervision Report, published annually, presents the supervisory strategy defined for each year and the supervisory activities carried out that year.
Supervision of bank advertising
Given that advertising is often the first point of contact between institutions and their customers and plays a significant role in the comparison of different products, it is essential that the advertising message is clear and truthful.
Supervision of bank advertising takes two different approaches:
- Pre-emptive: to ensure that institutions have effective procedures and controls in place to manage advertising activity risks, with the possibility of voluntarily signing up to advertising self-regulatory systems.
- Reactive: through the supervision of institutions’ advertising activities, requiring the withdrawal or rectification of adverts that fail to comply with the principles and criteria established in the applicable regulations.
List of institutions belonging to advertising self-regulatory systems
Supervision of customer service departments
The Banco de España supervises the customer service departments (CSDs) that most financial institutions are required to have. These services, which have a key role to play in the relationship between institutions and their customers, have two main functions:
- Resolution of disputes. CSDs are tasked with resolving conflicts or disputes relating to products, services or any other aspect affecting the banking relationship.
- Oversight function. CSDs must analyse the information relating to claims and complaints lodged by customers, with a view to identifying risk factors and remedying improper conduct. This contributes to improving customer protection, and, consequently, the reputation of the institutions themselves and of the entire system.
The Banco de España supervises the proper functioning and organisation of these services and verifies the internal rules of procedure established by institutions. Regional authorities may sometimes be involved in this verification process.