Legal tip 879. Bank of Spain supervising at last
Wednesday, January 9, 2013 @ 2:25 PM
Bank of Spain is reviewing its current supervision model. It is part of the price of the European aids to Spanish Banks.
On July 20, 2012 a memorandum was signed which included a commitment from the Bank of Spain to conduct an internal review of its supervisory procedures, including the process of decision making. The objective of the review was to perform a diagnosis of supervision procedures of Bank of Spain in order to identify gaps and make proposals for reform.
Main supervisor will have a permanent inspector team - "in situ", in each of the " relevant" entities, as Santander and BBVA have had for years.
Such an important and great new. Finally!
As we posted a long time ago ( click on here , or here ) it is evident that a right implementation and supervision of Law 57/68 and its consequennces for Banks protocols by Bank of Spain would have avoid a big part of the real estate and financial bubble in Spain. It is good that Judges are now punishing Banks in regards to liabilities out of provision 1.2 of Law 57/68. I am confident timidity is not going to be among the actitudes of the judiciary during the next months in regards to Banks and liabilities out of Law 57/68.
But let also be fair and make an account on how foreign Banks made business too out of this laxity. I am a very fan on De Grauwe and his prophetical vision of the problem: Spain did not create the bubble, it just happened here.
Anyhow, as we are all looking to solutions, this today´s new is of congratulation nature!
I am also sure that the Keith Rule´s Bank Guarantees in Spain petition, broadly promoted in EyeonSpain has played its due role already. Congratulations again Keith for your vision and persistency.
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"Panoramica de la calle Betis, Triana y el rio Guadalquivir, Sevilla", Seville, South-west of Spain, by Chodaboy, at flickr.com