Regulatory Alerts2012-06-27
Circular 5/2012 of the Bank of Spain on Transparency of Banking Services and Responsibility in Lending
The Bank of Spain issued Circular 5/2012 to develop the regulatory framework for banking transparency and responsible lending established by Order EHA/2899/2011 and the Sustainable Economy Law. The Circular mandates credit institutions to publish standardized interest rates and commissions, provide detailed pre-contractual information, and implement prudent credit assessment procedures to protect consumers. It also defines specific calculation methods for the Annual Percentage Rate (APR) and establishes reporting obligations for payment service providers offering currency exchange services.
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