Strengthening competitiveness and capital strength
Through:
- Increase in the level and quality of equity.
- Allocation of higher provisions for insolvency.
- Containment of operating expenses and improvement of cost structure.
- Extension and enhancement of international franchises.
The playing field must be leveled again to achieve European banking integration.
Financial statements vs. Stress test
What are we talking about?
- Financial statements (mandatory publication).
- Prepared by the directors who are responsible for their accuracy.
- They represent a true and fair view of the financial position according to common mandatory rules in the EU.
- Non-compliance has legal consequences for the directors.
- They are audited annually by prestigious firms.
- Constantly supervised by the Bank of Spain
- Stress test (unregulated publication).
- They attempt to predict the future
- They are based on subjective assumptions according to the objective.
- They are not required to be uniform in objectives, methodology, time horizon, variables to be analyzed, or assumptions
- They are not audited
- They are not supervised
- Without legal consequences
