Regulatory Alerts2018-12-18
Royal Decree-Law 22/2018 establishing macroprudential tools
The Spanish Government issued Royal Decree-Law 22/2018 to empower the Bank of Spain, the CNMV, and the General Directorate of Insurance and Pensions with new macroprudential tools to mitigate systemic financial risks. The decree grants the Bank of Spain authority to set limits on loan-to-value ratios, debt service-to-income ratios, and sectoral exposures, while enabling the CNMV to enforce liquidity requirements on collective investment institutions. Additionally, it introduces macroprudential measures for the insurance sector and establishes a temporary communication protocol to the Financial Stability Committee pending the creation of a national macroprudential authority.
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