Fernando Restoy: The challenges of the European resolution framework

Closing address by Mr Fernando Restoy, Deputy Governor of the Bank of Spain, at the Conference "Corporate governance and credit institutions' crises", organised by the Mercantile Law Department, UCM (Complutense University of Madrid), Madrid, 29 November 2016.

The views expressed in this speech are those of the speaker and not the view of the BIS.

1 Introduction

Let me begin by thanking the organisers for the invitation to close this conference on corporate governance and credit institutions' crises staged by the Law Faculty of the Madrid Complutense University. It is always a pleasure to return to the University where I was an undergraduate and a lecturer for several years, even if it is to a different Faculty from mine back then.

The recent financial crisis, like others before it, has been marked by the use by national authorities of sizeable public funds assigned to preventing the bankruptcy of numerous credit institutions in situations of non-viability. To minimise systemic risk and prevent a serious deterioration in financial stability, substantial State aid in the form of capital was granted across the EU from 2008 to 2014. In countries such as Spain, Belgium and United Kingdom, the figures were around 5% of GDP, in Germany and the Netherlands between 2% and 3.5%, while in Greece and Ireland aid was in excess of 20% and 30% of GDP, respectively.