Regulatory Alerts2017-07-04
Royal Decree-Law 2/2012 of 3 February on the Sanitization of the Financial Sector
The Spanish State issued Royal Decree-Law 2/2012 to mandate the immediate sanitization of Spanish credit institutions' balance sheets by imposing strict provisioning and capital requirements on real estate assets. The decree requires banks to submit adjustment plans to the Bank of Spain by March 31, 2012, and establishes incentives for institutional integration to restructure excess capacity. Additionally, it modifies the legal regime for Savings Banks, restricts executive remuneration for entities receiving public support, and enhances the operational framework for the Bank of Spain and the FROB.
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