Spain

The significant international presence of Spanish banks provides welcome diversification effects but may also have significant implications for inward and outward spillovers. The share of financial assets abroad has grown continuously for the Spanish banking sector, with the largest international exposures by financial assets concentrated in the United Kingdom, the United States, Brazil, Mexico, Turkey and Chile. Spanish subsidiaries are systemically important for the banking system in several host countries. To some extent, spillovers could be mitigated by the Spanish subsidiary model characterized by a large share of local funding in local currency and a relatively high degree of autonomy of risk management practices.