FROB as the national executive resolution authority

FROB was created in 2009 and until 2015 underwent a series of organizational and operational changes, in order to respond to the different phases of the financial crisis that began in Spain in 2008. In those years, its activity was mainly focused on providing financial support to entities in difficulties, mobilizing public resources for it. Although FROB continues to have other functions  derived from the processes already undertaken in previous stages (which basically include monitoring the stakes in BFA and Sareb, as well as the guarantees granted in previous sale processes), thanks to the approval of Law 11/2015 the transformation of the organizational structure, governance and functions of FROB was completed.

Law 11/2015 granted FROB new functions as resolution authority in the executive phase within the European SRM and collaborating with the Spanish preventive authorities (Bank of Spain and CNMV), within the Spanish institutional framework, with a mandate to protect financial stability and minimize the impact, on the real economy and the taxpayer, of any future non-viability of an entity.

In addition to having advisory functions in the planning phase, FROB is responsible for the direct exercise of resolution execution powers for non-significant credit institutions and investment firms. It is also in charge of implementing the resolution decisions adopted by the Single Resolution Board (SRB), the central authority of the Single Resolution Mechanism, for entities established in Spain and exercises the Spanish representation in the SRB as well as participates in its different working groups.

At international level, FROB, as the contact and coordination authority, participates in the different committees and groups of international resolution authorities, helping to define solid resolution standards at international and European level. In this way, it participates in committees and working groups of the Financial Stability Board, the European Banking Authority or the Single Resolution Board.