Supervising solvency

The Banco de España supervises the solvency and the compliance with specific regulations of banks, saving banks, credit co-operatives, branches of foreign credit institutions, specialist credit institutions, e-money issuing entities, mutual guarantee and re-guarantee companies, foreign exchange establishments and valuation agencies. Its powers over the branches of institutions from other EU countries are limited to controlling the branch's liquidity and ensuring that it complies with general regulations.

The supervision model applied comprises four main elements:

  • Effective and prudent regulation, including rules on access to activities and how they are carried out.
  • A system of continuous supervision of institutions comprising periodic information submissions, remote analysis and in situ inspections .
  • A series of corrective measures (formulation of requirements and recommendations, authorisation of write-down plans, intervention measures and substitution of directors).
  • A disciplinary and sanctioning system which covers institutions and their directors.

When carrying out its functions, the Banco de España works in close collaboration with other national and regional authorities that are entrusted with the supervision of financial activities. It also works in close collaboration with foreign supervisory authorities and actively participates in all national and international supervision forums.