Organisational framework for resolution in Spain

Organisational framework for resolution in Spain

At a national level, Law 11/2015* set up a new institutional framework in order to comply with the principles set out in the Resolution Directive to separate the supervisory and resolution functions.

The Spanish model distinguishes between two types of national resolution authorities: the preventive resolution authorities, responsible for the preventive stage of the resolution, and the executive resolution authority, responsible for the execution stage.

There are three national resolution authorities:

  • Two preventive resolution authorities that must exercise their tasks through bodies that are operationally independent from their supervisory functions: the Bank of Spain, with regard to credit institutions and the CNMV (Spanish Securities Market Regulator) for investment firms.
  • And an executive resolution authority, which is also the contact authority at an international level, whose functions are entrusted to FROB.

(*) Law 11/2015 applies not only to credit institutions but also to investment firms. However, those whose legally required minimum share capital is lower than 730,000 euros or whose activity meets another series of characteristics are exempt.