Since 4 November 2014 the Single Supervisory Mechanism is in charge of the supervision of the Spanish credit institutions as well as those from the rest of the Eurozone members. It’s a system headed by the European Central Bank involving the national supervisory authorities, like Banco de España.
The supervision model is based on four elements:
- Effective and prudent regulation, with rules for accessing and carrying out the activity.
- Continuous supervision of financial institutions, with receipt and analysis of periodic information and on-site inspections.
- Corrective measures: Requirements and recommendations, restructuring plans; intervention or replacement of directors.
- A disciplinary and sanctioning system which covers institutions and their directors.