Spain

The transposition of the Bank Recovery and Resolution Directive (BRRD) into Spanish law strengthened the resolution regime in Spain.1 Resolution powers in the past depended on the combination of public support, an asset separation tool (Asset Management Company, Sareb) and mergers and acquisitions. Those tools exposed the Spanish authorities to high public costs and were ineffective in the face of resolving large, complex institutions.2 The BRRD established harmonized rules within the European Union (EU) for recovery and resolution of banks and investment firms; within the euro area, the Single Resolution Mechanism Regulation (SRMR) aims to establish uniform resolution rules and procedures—the BRRD and the SRMR are closely aligned with the Financial Stability Board (FSB)’s Key Attributes of Effective Resolution Regimes for Financial Institutions (KAs). The implementing national legislation contains a broad set of resolution tools and establishes a framework for improved recovery and resolution planning as well as coordination across the EU.