Who we are
FROB is an institution governed by public law with its own legal status and full public and private capacity, which essential mission is to manage the execution of the resolution processes of credit institutions and/or investment firms undertaken in Spain.
FROB´s legal framework is provided for in Law 11/2015, of 18 June, on the recovery and resolution of credit institutions and investment firms. This Law transposes Directive 2014/59/EU into the Spanish legal system, which is, in turn, one of the regulations that contribute to the constitution of the Single Resolution Mechanism, created by Regulation (EU) No. 806/2014, being one of the pillars of the so-called Banking Union.
In the Spanish banking resolution model, two types of national resolution authorities are envisaged: (i) preventive resolution authorities (Banco de España and CNMV), responsible for the preventive phase of resolution; and (ii) the executive resolution authority (FROB), responsible for the execution phase. FROB carries out its duties in close collaboration with the preventive resolution authorities, which must carry out their tasks through bodies that are operationally independent of their supervisory functions.
The special nature and duties entrusted to FROB require fast and effective intervention, often in situations of a great stress. This justifies, since its creation, a different treatment within the Spanish public sector institutions. This explains why FROB has certain specialties in areas such as the budget or in the legal regime applicable to its assets (as an example, the shares and/or instruments that the FROB could acquire in the exercise of its resolution powers would not be part of the Public Administration assets). These particularities contribute to FROB being able to operate independently and effectively.