2018 Report on Banking Supervision


The Banco de España has just published the 2018 Report on Banking SupervisionAbre en ventana nueva. This report includes different sections on its supervisory activity and opens with an introductory letter from the Governor, Pablo Hernández de CosAbre en ventana nueva, and an interview with the Deputy Governor, Margarita DelgadoAbre en ventana nueva.

The chapter on the supervision of institutions’ conduct explains how the Banco de España has strengthened its commitment to protect bank customers and promote best practices in the industry by stepping up its supervision of conduct.

In particular, supervisory activity in this field focused on two main areas:

  • Checking compliance with the regulations on transparency applying to mortgages and that the Code of Good Practice (CGP) included in Royal Decree-Law 6/2012 of 9 March 2012 on urgent measures to protect mortgage debtors experiencing financial hardship was being correctly applied. Specifically, a total of 33 on-site supervisory actions and 16 off-site monitoring actions were carried out on matters relating to mortgage lending.
  • With respect to consumer credit, in 2018, work was carried out to verify compliance with the transparency requirements for this type of credit, in four on-site supervisory actions and 36 off-site monitoring actions.

Similarly, last year supervision of conduct covered other varied areas:

  • The requirements to report the financial situation and payment history of SMEs and self-employed persons.
  • New supervisory actions deriving from ongoing monitoring of advertising activity.
  • Digital contracts, specifically, compliance with pre-contractual information requirements in relation to certain banking products.
  • Compliance with transparency obligations by payment institutions.
  • The activity conducted by the bureaux exchanging foreign banknotes and traveller’s cheques.
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