Spain has adopted EU Directives regulating the equity and solvency ratio of credit institutions, and the Second Council Directive on banking coordination. It has also adopted EU Directives on the securities market and insurance services. The improvement of Spain s economic climate is benefiting the banking industry. Inflation and interest rates are at historic lows. Competition in the banking market is intense and brings down interest rates.
Spanish banks are well capitalized.
Private and savings banks are important because of their volume of business and because their activities cover all segments of the economy. Together they have over 17,500 branch offices. Many of them also maintain an international presence. The Spanish Savings Bank Confederation comprises 50 confederated savings banks and 12 regional savings bank federations, with more than 16,600 branch offices. Savings banks are well-established institutions attracting a substantial portion of private savings in Spain.