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Financial regulation in Spain

Author

Listed:
  • Santiago Carbo-Valverde

    (Bangor Business School)

  • Francisco Rodriguez-Fernandez

    (University of Granada)

Abstract

This paper analyses the regulatory framework of the financial system in Spain. Particular attention is paid to the adoption of the EU directives and the way they have been transposed to Spain from 1986 to present, including the regulatory developments in the last few years from the onset of the financial crisis. The Spanish case appears particularly interesting as it has shown one of the most significant transformations during the period considered in the structure of regulation. This paper surveys the implementation of the most important EU regulations since the early 1980s to present. Overall, the implementation has been successful and has been timely. The implementation has been particularly intense and fast in what the solvency regulation is concerned. However, some other regulations, in particular those concerning capital markets, have normally required more time to be transposed or have had to be gradually implemented. The financial crisis has brought a number of significant changes beyond EU regulations for Spanish banks and it has shown that there was still substantial room for improvement in supervision and prudential regulations. The reaction has been significant as the recapitalization and restructuring process, have brought a number of regulatory changes beyond EU Directives.

Suggested Citation

  • Santiago Carbo-Valverde & Francisco Rodriguez-Fernandez, 2014. "Financial regulation in Spain," Working papers wpaper59, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    • Handle: RePEc:fes:wpaper:wpaper59
    as

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    References listed on IDEAS

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    1. Dell'Ariccia, Giovanni & Detragiache, Enrica & Rajan, Raghuram, 2008. "The real effect of banking crises," Journal of Financial Intermediation, Elsevier, vol. 17(1), pages 89-112, January.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Is the 2007 US Sub-Prime Financial Crisis So Different?: An International Historical Comparison," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 291-299.
    3. Martín-Aceña, Pablo & Pons, Ángeles & Betrán Pérez, Concha, 2010. "Financial crises and financial reforms in Spain : what have we learned?," IFCS - Working Papers in Economic History.WH wp10-01, Universidad Carlos III de Madrid. Instituto Figuerola.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Is the 2007 U.S. Sub-Prime Financial Crisis So Different? An International Historical Comparison," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 291-299, September.
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    More about this item

    Keywords

    Financial regulation; Spain; EU Directives; crisis; restructuring;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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