Regulatory Alerts2011-06-04
Royal Decree 771/2011 of 3 June modifying Royal Decree 216/2008 on own funds of financial entities and Royal Decree 2606/1996 on deposit guarantee funds
The Spanish Ministry of Economy and Finance issued Royal Decree 771/2011 to transpose EU directives enhancing prudential supervision and capital requirements for credit institutions and investment firms. The decree introduces stricter rules for own funds quality, liquidity risk management, large exposure limits, and remuneration policies to mitigate systemic risks exposed by the financial crisis. It also establishes a new risk-based contribution mechanism for deposit guarantee funds, requiring additional contributions from entities offering excessive returns on deposits.
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