The Spanish economy and banking system’s exposure to material third countries

Rationale Each year, the Banco de España identifies a list of third countries (i.e. those outside the European Economic Area) to which Spanish credit institutions have relevant exposures. To that end, it is important to analyse the Spanish economy’s exposure to these material third countries from a number of perspectives. Takeaways In 2022, the Banco de España identified the United Kingdom, the United States, Mexico, Brazil, Türkiye,Chile, Peru and Colombia as material third countries for the Spanish banking system. This articledescribes the Spanish economy’s banking, trade and financial exposure to these countries. The most significant exposures are to the United Kingdom, which heads most of the variables underconsideration. The United States also ranks very highly among the developed countries. Among the emerging market economies, the exposure to Brazil and Mexico in terms of bank assetsand liabilities and Spanish outward foreign direct investment is noteworthy. The degree of exposure toother countries is much lower, with Chile and Türkiye ranking above Colombia and Peru.