The Association of Inspectors and Auditors of the Bank of Spain yesterday sent a report to the Commission of investigation of the financial crisis with its legal proposal to "improve the supervision of credit institutions." These suggestions were approved on November 26 by the assembly of this association and ask that they be delivered to the groups.
The inspectors want the Commission to assume them and propose them to the Congress "to avoid that, in the future, the mistakes that have caused devastating consequences for thousands of Spanish citizens will be repeated". The inspectors have led tough sessions in this commission in which they have criticized that the supervisor looked the other way before the poor state of some old savings banks to avoid claiming large provisions that would have led to losses. It's what they called the sucuestro of the supervisor.
Among the proposals stand out those that claim "mechanisms to guarantee the functional autonomy and the technical independence of the inspecting personnel of the Bank of Spain, trying to avoid devaluing the importance of the actions carried out by these personnel".
They also consider it important "to ensure that inspections reach the corresponding management bodies, while ensuring that research and inspection actions are carried out that directly verify the actual situation of the entities" so that it becomes available. thus of a faithful image of them, they point out in the report. This association, majority in the supervisory body, believes that before the Single Supervisory Mechanism of the EU, "the participation of inspectors of the Bank of Spain in the supervision of all systemic entities must be guaranteed, without conditioning the decision-making role of the ECB" .
He points out that the role of the States is important, now that the Banking Union is being built, because the cost of another banking crisis "must be assumed" by each country, "as has been shown in the case of Banco Popular". That is why they demand that each State has a complete knowledge of the situation of its entities.