Regulatory Alerts2017-06-24
Royal Decree-Law 11/2017 of 23 June on Urgent Financial Measures
The Spanish State issued Royal Decree-Law 11/2017 to urgently adapt the legal framework for credit cooperatives and resolution regimes to European and international standards. The decree allows credit cooperatives to integrate into institutional protection systems, thereby facilitating mutual aid and adjusting capital requirements, while simultaneously introducing a legal distinction between preferential and non-preferential ordinary credits to enhance loss-absorption capacity. These measures aim to ensure compliance with the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) and Total Loss-Absorbing Capacity (TLAC) standards, preventing competitive disadvantages for Spanish entities and safeguarding local economic stability.