Spain

Banking regulation and supervision of Spanish banks has improved considerably since the 2012 FSAP. Swift and determined action addressed the major weaknesses that led to the accumulation of imbalances in the banking system in the period leading to the crisis. This was a result of several factors, including the authorities’ commitment to implement the measures agreed at the time of the 2012 program for the restructuring and recapitalization of the banking system; the national transposition and implementation of European Union (EU) directives and regulations; and the establishment in 2014 of the Single Supervisory Mechanism (SSM) to which Banco de España (BdE) participates as a national competent authority (NCA).