Regulatory Alerts2021-01-30
Circular 1/2021 of the Bank of Spain modifying Circular 1/2013 on the Risk Information Centre and Circular 5/2012 on banking transparency and lending responsibility
The Bank of Spain issued Circular 1/2021 to align the Risk Information Centre (CIR) and banking transparency regulations with the Revolving Credit Order, expanding reporting obligations to payment and e-money entities and introducing new official interest rate indices. The circular mandates enhanced data disclosure to improve solvency analysis and prevent over-indebtedness, particularly in the context of the COVID-19 pandemic, by adding new reporting dimensions and lowering risk thresholds. These modifications aim to increase the precision of credit risk assessments and update reference rates to reflect current financial market standards while maintaining transitional provisions for legacy indices.
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