September 21, 2020

The Bank of Spain reorganizes supervision to better coordinate with the ECB | Economy

The Bank of Spain reorganizes supervision to better coordinate with the ECB | Economy



Pablo Hernández de Cos, Governor since May, has made the first major internal movement in the Bank of Spain. The Executive Committee of the Bank of Spain has approved the reorganization of the Directorate General of Supervision, presented by its CEO, Mercedes Olano. Since 2011, the Spanish supervisor directly controls around 15% of the financial system, small banks and credit cooperatives, according to sources from the Bank of Spain. The rest are the 12 major entities (Santander, BBVA, CaixaBank, Bankia, Banco Sabadell, Bankinter, Unicaja, Liberbank, Kutxabank, Ibercaja, Abanca and Cajamar), whose supervision is the direct responsibility of the European Central Bank (ECB), although the workforce of the Bank of Spain works in coordination with Frankfurt.

According to the supervisor, the aim is to "reinforce the supervision of less significant entities, direct responsibility of the Bank of Spain and enhance coordination" internally and with the Single Supervisory Mechanism, dependent on the ECB. It will also try to facilitate coordination with "other national supervisory bodies, for which the functions of horizontal analysis of the General Directorate are reorganized", says the official note referring to the National Securities Market Commission or the ICAC, the control of the auditors.

This movement will involve changes in about one third of inspectors and supervisors, with promotions and new responsibilities in some cases. "Four years after the integration of the Bank of Spain in the structure of the Single Supervisory Mechanism, it is considered that there are organizational aspects that require additional adjustments," says the official note. Behind this movement is Margarita Delgado, subgovernor, who has supervision under their responsibility.

The Directorate General of Supervision is organized around two Deputy General Directorates, which will coordinate the five departments. The departments I and II, in charge of the supervision of the significant Spanish entities, "assume the supervision of the subsidiaries and branches of other significant entities of the Single Supervisory Mechanism that until now were carried out in Department III. the less significant entities and reinforces the units dedicated to the realization of inspections on-site"

Also, the note says that the general director will be in charge of the Coordination Service of the Single Supervisory Mechanism and the newly created group of Organization and Quality, "which will group the functions related to the planning and training of personnel and the review of processes of the General Directorate ".

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