Activated the Macroprudential Authority to avoid future financial crises

Activated the Macroprudential Authority to avoid future financial crises

It is integrated by the Bank of Spain, the CNMV, the Directorate General of Insurance and the Ministry of Economy

  The Council of Ministers on Friday gave the green light to the body that will be responsible for preventing the whole economy before possible financial crises that loom over the country. For this, the Macroprudential Authority will serve, the meeting point in which the Bank of Spain, the National Securities Market Commission, the General Directorate of Insurance and Pension Funds and the Ministry of Economy will be integrated.

The head of the latter department, Nadia Calviño, was chatting on social networks for having fulfilled the "commitment to move forward" this initiative, because Spain was one of the few countries in Europe that did not have this collegiate body.

   It will meet periodically to analyze the systemic risk factors; issue opinions; publish alerts on any aspect that may affect financial stability; and make recommendations to sector supervisors urging them to take concrete actions. In addition, it will send an annual report to Congress.

In the case of the Bank of Spain, it may establish credit limits avoiding, for example, that mortgages consume a large part of the income or represent a very high percentage of the value of the property. It will be able to establish limits to the sectoral concentration and set a cushion of countercyclical capital.

For its part, the CNMV provides itself with tools to set minimum liquidity requirements and oblige the funds to have a minimum of quality assets to meet requests from their participants at specific times.