The potential of the funds to destabilize the economy in Spain is "limited", according to the Bank of Spain

MADRID, 6 Dic.

The potential of the funds to destabilize the economy in Spain is "limited", according to the Bank of Spain


The Bank of Spain has indicated in the autumn edition of the Financial Stability Review that the weight of investment funds with respect to the total financial system is lower than in the main world economies as a whole and, consequently, the potential of Spanish investment funds to affect and destabilize the system is more "limited."

Furthermore, he points out that a "very high" percentage of open investment funds in Spain are highly regulated, subject to the Ucits regulations, which structurally limits the risk.

This conclusion has come after confirming that on the international scene open investment funds are attracting growing interest from the point of view of financial stability and that, until now, the authorities had focused on their regulation from a mainly individual perspective. or microeconomic and investor protection.

However, the article points to the growing weight of funds in the financial system to address the potential risks derived from liquidity mismatch, leverage or interconnections with the rest of the financial system; that is, approaching the debate from a macroprudential perspective.

In this sense, it stands out that, in the Spanish case, investment funds already have a large number of tools that contribute to measuring, monitoring and mitigating the possible risks of investment funds at an individual level, which, in aggregate , also benefits financial stability.

On the other hand, the article states that the National Securities Market Commission (CNMV), as a supervisor, also has tools to activate additional measures.

Likewise, it focuses on the fact that, although Spain is already largely aligned with the proposed recommendations and guidelines, there is a proactive will to transfer to the Spanish regulatory framework all those possible changes or improvements that are necessary in light of the final texts. agreed upon internationally.

Linked to this, it specifies that, in relation to the existing Spanish regulatory framework, the design of macroprudential policy in the non-banking field is in its first steps and lacks, for the moment, an umbrella integrating all the elements that must be shape said policy.

These elements go through an adequate design of risk assessment processes that take into consideration the interrelationships with the financial system as a whole, assessment of the effectiveness and efficiency of the tools intended for the objectives to be pursued, and assessment models. internal coordination and decision making, which are important in times of high risk.