Margarita Delgado: Impact of the new law on real estate credit

Closing remarks by Ms Margarita Delgado, Deputy Governor of the Bank of Spain, at the PWC event on the "Impact of the new law on real estate credit", Madrid, 21 March 2019.

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

Good afternoon,

I would like to thank PWC for kindly inviting me to speak at the close of today's event on the new real estate credit law. I shall try to speak about the most innovative features of the new law from the supervisor's standpoint, not dwelling too long on the details of the legal changes introduced, as I am sure that they have been widely discussed over the course of the morning.

Specifically, I shall focus on the three features of the new law that strike me as particularly important from a supervisory viewpoint: (i) the emphasis given to customer protection, (ii) the need to ensure legal certainty for the mortgage market to function properly and (iii) the growing importance of credit conditions. I shall also refer to the potential short and medium-term consequences of this law for access to owner-occupied housing, and shall conclude with some thoughts on how the new macroprudential tools may shape the way we supervise certain banking businesses, notably real estate lending.