Regulatory Alerts2016-02-02
Circular 2/2016 of the Bank of Spain on Supervision and Solvency Completing the Adaptation of Spanish Law to Directive 2013/36/EU and Regulation (EU) No 575/2013
The Bank of Spain issued Circular 2/2016 to complete the transposition of EU Directive 2013/36/EU and Regulation (EU) No 575/2013 into Spanish law, establishing detailed prudential requirements for credit institutions. The circular mandates the implementation of combined capital buffers, including countercyclical and systemic risk buffers, while defining strict internal governance, suitability, and remuneration standards for bank management. It also clarifies the supervisory division of responsibilities between the Bank of Spain and the European Central Bank under the Single Supervisory Mechanism and imposes comprehensive reporting obligations.
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