EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 28 February  2019   
on the establishment  of a macroprudential board  
 (CON/20 19/10) 
 
Introduction and legal basis  
On 18 February 2019  the European Central Bank (ECB) received a request from the Banco de España , 
on behal f of the State Secretar y for Econom ic Affairs  and Support for Business , for an opinion on a draft 
royal decree on the creation of a macroprudential authority financial stability board, and on the 
development and notification of the macroprudential tools wh ich may be adopted by the Banco de 
España, the National Securities Market Commission and the Directorate General for Insurance and 
Pension Funds  (hereinafter the ‘draft royal decree ’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union  and the third and sixth indents of Article  2(1) of Council Decision 
98/415/EC1, as the draft royal decree relates to the Banco de España  and rules applicable to financial 
institutions insofa r as they materially influence the stability of financial institutions and markets . In 
accordance with the first sentence of Article  17.5 of the Rules of Procedure of the European Central 
Bank, the Governing Council has adopted this opinion.  
 
1. Purpose of th e draft decree law 
1.1 The draft royal decree creates Autoridad Mac roprudencial Consejo de Estabilidad Financiera  
(AMCESFI , the Macroprudential Authority Financial Stability Board ) and (among other things) lists 
the macroprudential tools that may be used by the competent macroprudential authorities.  
1.2 The objective of AMCESFI is to contribute to the stability of the financial system as a whole through 
the identification, prevention and mitigation of circumstances or actions which could cause 
systemic risk  in the financial sector . AMCESFI is to pursue this objective in cooperation with the 
Banco de España, the National Securities Market Commission and the Directorate General for 
Insurance and Pension Funds (he reinafter collectively referred to as ‘the sectoral authorities’ ). 
However, each of the sectoral authorities  retain s its supervisory competences, including the power 
to adopt macroprudential tools . 
1.3 The tasks of AMCESFI include the identif ication , prevent ion and mitigat ion of the circumstance s or 
actions which m ay give rise to systemic risk in the financial sector . For th ese purpose s AMCESFI is 
to monitor and analyse the factors that could affect systemic risk. Based on the results of this work , 
                                                 
1  Council Decision 98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
ECB -PUBLIC  
2 AMCESFI may issue opinions , warnings and recommendations, specifying , wherever possible, the 
systemic risk factor it means to address and the level of severity  of that risk factor . After it receives 
notification from any of the sectoral authorities o f their intention to activate, recalibrate or deactivate 
any of their macr oprudential tools , AMCESFI will issue its opinion thereon. AMCESFI may direct 
communications to the financial system  as a whole, or to a particular financial authority or a group 
or subgroup of financial sector participants , warning  about activities or iss ues that could constitute 
system ic risk factors. AMCESFI may also recommend that the sectoral authorities take measures 
to prevent or mitigate systemic risk factors.  
1.4 AMCESFI will take into account the European Union and European Economic Area objectives o n 
financial stability and cooperate with the macroprudential authorities in other Member States and 
with the competent European authorities. AMCESFI will inform the Secretariat of the European 
Systemic Risk Board (ESRB) of any recommendations issued, and w ill also inform the ECB whe re 
the recommendation issued affects institutions under the ECB’s direct supervision. AMCESFI may 
adopt recommendations of the ESRB at the national level in ca ses where it is the competent 
authority for these purposes, or provide  a justification for lack of action, as applicable, under the 
provisions of Regulation (EU) No 1092/201 02.      
1.5 The two main bodies of AMCESFI are the Board , which is AMCESFI’s decision -making body, and 
the Technical Committee, which prepares the matters t o be decided by the Board . The Board  is 
composed of seven members, including the Minist er for Economy and Enterprise  (as Chair), the 
Governor of the Banco de España  (as Vice -Chair) , the Deputy  Governor of the Banco de España, 
the President and Vice -Preside nt of the National Securities Market Commission, the State 
Secretary for Economic Affairs and Support for Business, and the Director General for Insurance 
and Pension Funds. The Technical Committee is composed of nine members , including the Deputy 
Governor  of the Banco de España (as Chair), the Secretary -General of the Treasury and 
International Finance (as Vice -Chair), the Director General of Financial Stability, Regulation and 
Resolution of the Banco de España (as Secretary), the Director General of Banki ng Supervision of 
the Banco de España and five other high -level officials of the Treasury and the sectoral authorities .  
1.6 AMCESFI will be a collegiate body , formally  established within  the Ministry of Economy  and 
Enterprise . Each of the bodies that form par t of AMCESFI  will contribute its own members of staff 
and the material resources needed for the operation  of AMCESFI . AMCESFI will not  have a 
specific budget . 
1.7 The draft royal decree also lists the macroprudential tools which may be adopted by the sectoral 
authorities for the purpose of preventing systemic risks and seeking a sustainable contribution from 
the financial system towards economic growth . These includ e the  tools – such as capital buffer 
requirements, limits on sectoral concentrations, conditions on loan provisions and other 
transactions, higher risk weightings for real estate exposures , and any of the measures set out in 
                                                 
2   Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European 
Union macro -prudential oversight of the financial system and establishing a European Systemic Risk Board (OJ L 
331, 15.12.2010, p. 1).  
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3 Article 458 of Regulation (EU) No 575/20133 – that may be adopted by the Banco de España in 
respect of credit institutions . The Banco de España is also explicitly designated under the draft 
royal decree as the competent authority for the implementation  of Article 458 of Regulation (EU) No 
575/20134. 
1.8 The draft royal decree also authorises  the Banco de España to use macroprudential t ools 
concerning capital buffer requirements  in relation to  exposures to specific sectors or categories , 
and to establish limits on sectoral concentrations and conditions on loan provisions and other 
transactions . Where these tools and limits are only requi red in relation to exposures to a specific 
sector or category, as envisaged  by Law 10/2014 on the organisation, supervision and solvency of 
credit institutions5, the draft royal decree provides that  the following points , amongst others,  may be 
taken into a ccount : (1) the quantitative import ance of the different categories or sectors to which 
credit institutions have exposures  (in order to determine the potential limits on sectoral or category 
concentration and the potential countercyclical buffer to be established ); (2) the relevant factors for 
setting the limits and conditions on lending and the acqui sition of  fixed -income securities and 
derivatives by credit institutions, for transactions with agents in the private sector based in Spain, 
including but not limited to (i) the relationship between the volume of credit provided to borrowers 
and the ir disposable income or the  guarantees  provided by them; ( ii) the financial burden 
occasioned by  repayment ; (iii) the duration of the se agreements ; (iv) the fixed, va riable or mixed 
nature of the agreed interest rate; and ( v) the currency of the credit transactions ; (3) the credit 
dynamics in each category/ sector of credit exposure; and (4) the criteria established in this regard 
by European and international authorit ies relating to macroprudential objectives, instruments and 
indicators . The draft royal decree provides that the sectoral authorities, including the Banco de 
España, will establish internal procedures for using macroprudential tools. Any potential use, 
recalibration or deactivation of a macroprudential tool, including th ose tools applicable to credit 
institutions adopted by the Banco de España, must be notified to AMCESFI at least seven working 
days in advance of the planned date of adop tion of the measures . 
 
2. General observations  
2.1 The ECB welcomes the fact that the draft royal decree establishes a national macroprudential  
board  which ensur es that all the relevant authorities and institutions involved in macroprudential 
policy are represented on the  board , and defin es the board’s  objectives, mission and powers in line 
with the guiding principles expressed in  Recommendation ESRB/2011/36 and Recommendation 
ESRB/2013/17. 
                                                 
3   Regulatio n (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential 
requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 
27.6.2013, p. 1).  
4   This provision is intended to  confer on the Banco de España an authority that had been previously only granted on a 
transitional basis.  
5   Law 10/2014 , of 16 June , on the organisation, supervision and solvency of credit institutions, BOE no. 156, 
27.06.2014, p. 49412.  
6   Recommenda tion of the European Systemic Risk Board of 22 December 2011 on the macro -prudential mandate of 
national authorities (ESRB/2011/3) (OJ C 41, 14.2.2012, p.1).  
7   Recommendation of the European Systemic Risk Board of 4 April 2013 on intermediate objectives and instruments 
of macro -prudential policy (ESRB/2013/1) (OJ C 170, 15.6.2013, p. 1).  
ECB -PUBLIC  
4 2.2 The ECB also welcomes the fact that the draft royal decree  lists the macroprudential tools tha t the 
sectoral authorities , including the Banco de Espa ña, may use, and in particular gives the Banco de 
España the authority to  use macroprudential tools concerning capital buffer requirements for 
exposures to specific sectors or categories, and to establ ish limits on sectoral concentrations and 
conditions on loan provisions and other transactions , as envisaged by Law 10/2014  on the 
organisation, supervision and solvency of credit institutions . The draft royal decree also refers to 
the possibility of apply ing a countercyclical capital buffer for exposures to a specific sector or 
category, which was  also envisaged by Law 10/2014  on the organisation, supervision and solvency 
of credit institutions.  The ECB has previously  stated its views w ith respect to this specific 
application of the sectoral buffer in its opinion8 on Royal Decree –law 22/2018  on the creation of  
macroprudential tools9, which amended Law 10/2014 on the organisation, supervision and 
solvency of credit institutions . 
 
3. Role of Banco de España as macroprudential authority  
3.1 The ECB considers that central banks should play a leading role in macroprudential oversight, 
given their expertise and existing responsibilities in the area of financial stability10. This is 
particularly so in the case of  the Banc o de Espa ña, which retains  the powers to use 
macroprudential tools as provided in Law 10/2014 on the organisation, supervision and solvency of 
credit institutions , holds the position of Vice-Chair on the Board and of Chair on the Technical 
Committee, and w ill act as the secretariat of the  Technical Committee . The ECB therefore 
welcomes the role envisaged for the Banco de España  as set out in the draft royal decree.   
3.2 The ECB understands that the Banco de España shall continue to be the concerned authority in  
Spain for the purposes of notification to the ECB by the national competent or designated 
authorities of requirements for capital buffers to be held by credit institutions in addition to own 
funds requirements and any other measures aimed at addressing sy stemic or macroprudential 
risks under Article 5 of Council Regulation (EU) No 1024/201311. 
 
 
 
                                                 
8   See Opinion CON/2018/58. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  
9   Royal Decree -law 22/2018, of 14 December, on the establishment of macroprudential tools, BOE no. 304, 
18.12.2018, p. 124062.  
10    This is in line with recital 24 of Regulation (EU) No 1092/2010. This is also reflected, for example, in the fact that 
under Article 6(1) of Regulation (EU) No 1092/2010 the members of the  General Board of the ESRB with voting 
rights include the President and the Vice -President of the ECB and the Governors of the national central banks of 
the ESCB. As previously noted by the ECB,  given their central role in macro -prudential policy, the Gene ral Board 
should include representatives from all ESCB central banks. See paragraph 2.1 of ECB Opinion CON/2015/4. 
Recommendation ESRB/2011/3 envisages that the national macroprudential authority can be either a single 
institution or a board of authorities , but also recommends to Member States to ensure that central bank s play a 
leading role in the macroprudential policy. See ESRB Recommendation on the macro -prudential mandate of national 
authorities (ESRB/2011/3): Follow -up Report – Overall assessment publ ished on the ESRB website at 
https://www.esrb.europa.eu ; see also paragraph 5.2 of Opinion CON/2014/46 and paragraph 2.3 of Opinion 
CON/2014/21.  
11   See Regulation (EU) No 1024/2013 of the Council of 15 October 20 13 conferring specific tasks on the European 
Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 
63). 
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5 4. Procedure for activation of m acroprudential tools  
4.1 The draft royal decree  provides that the sectoral authorities have an obligation to notify AMCESFI 
at least seven  days in advance of the activation, recalibration or deactivation of macroprudential 
tools. This notification period may be shortened whe re advisable under market circumstances or 
where the measure must be used immediately. In view of the short time frame in which AMCESFI 
is to issue its opinion, the ECB understands that the issuance of such an opinion, or the lack of it, 
does not preclude the adoption of the macroprudential tool by the relevant sectoral authority in 
order to safeguard the independence of t hat sectoral authority ’s actions .  
4.2 The draft royal decree stipulates that AMCESFI must inform the ESRB of recommendations issued 
by AMCESFI to the sectoral authorities. In order to ensure that AMCESFI ’s actions complement the 
ESRB ’s actions taken at Union level, it is suggested that the requirement to inform contained in 
Article 18(2) of the draft royal decree  be amended to also include warnings addressed to the 
financial system or financial authorities, in particular if significant cross -border effects are  to be 
expected.  
 
5. Warnings addressed to a group or sub -group of financial sector stakeholders  
The draft royal decree  envisages that AMCESFI may issue  warnings addressed to a group or sub -
group of financial sector stakeholders about activities or issues tha t could constitute systemic risk 
factors. The issue  of such warnings allows AMCESFI to directly address  stakeholders from 
different sub-sectors within the financial  sector . However, directly addressing warnings to groups of 
financial sector stakeholders co uld interfere with the macroprudential supervision conducted by the 
sectoral authorities. Furthermore, it is more consist ent with the coordinating role of AMCESFI that 
those warnings are issued through the relevant sectoral authorities. It is t herefore suggested that 
Article 12 of the draft royal decree be amended so that warnings to groups of financial sector 
stakeholders are channelled through the relevant sectoral authorities.  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 28  February  2019. 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI