Regulatory Alerts2021-12-23
Circular 5/2021 of the Bank of Spain modifying Circular 2/2016 on macroprudential supervision and solvency
The Bank of Spain issued Circular 5/2021 to implement additional macroprudential tools, specifically enabling sector-specific countercyclical capital buffers, sectoral concentration limits, and lending condition restrictions. These measures allow regulators to target systemic risks arising from specific economic sectors rather than applying homogeneous requirements to the entire financial system. The circular modifies Circular 2/2016 to define the calculation methodologies, activation criteria, and reporting obligations for these new supervisory instruments.
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