Bank of Spain Supervisory Functions and Financial Responsibilities

Supervisory Tasks of the Bank of Spain

The supervisory tasks undertaken by the Bank of Spain are as follows:

• Monitoring and Inspection: The Bank monitors and inspects credit institutions, including all offices or facilities within or outside national territory. Responsibilities include:
  • Granting administrative licenses and maintaining official records.
  • Conducting regular and extraordinary inspections.
  • Preparing case files and imposing sanctions for minor and serious breaches.
  • Intervening in the event of an acute crisis within a credit institution.
• International Cooperation: Cooperating with foreign authorities by sharing information regarding management, facilities, and property to facilitate solvency monitoring.
• Mortgage Market Oversight: Monitoring the legal framework of the mortgage market, without prejudice to the powers assigned to the National Securities Market Commission.

Financial System Stability and State Functions

• Promoting the smooth functioning and stability of the financial system and national payment systems, without prejudice to the functions of the ECB.
• Managing currency circulation and performing assigned State functions.
• Providing treasury services and acting as the financial agent for Public Debt.

Treasury and Public Debt Services

The 1994 Law on the Autonomy of the Bank of Spain (LABE) stipulates that, in agreement with the Treasury and requesting Autonomous Communities, the Bank of Spain may provide:

• Treasury Services: Maintaining accounts, processing receipts and payments for the Administration, and developing related activities, excluding the granting of overdrafts and loans.
• Financial Agent Services: Contributing technical resources to facilitate the issuance, redemption, and management of public debt.

Information Management and Advisory Roles

• Centralized Data: Maintaining the Central Risk Information (CIR) and the Central Balance Sheet. The CIR, created in 1963, compiles data from banks to develop national statistics and report borrowers representing exceptional credit risk.
• Government Advisory: Providing expert advice to the Government.
• Statistical Publication: Developing and publishing statistics related to its functions.

Special Operations (General Prohibition Act 1962)

This includes cash deposits made to secure payments and direct accounts for public debt, where natural and legal residents in Spain can hold debt security balances.