The President of the Spanish Banking Association (AEB), Miguel Mart\u00edn Fern\u00e1ndez, set out yesterday, during his address at the “New Economy Forum”, a series of guiding principles which, in his view, could serve as a guide for the activity of the Spanish banking system.<\/p>\n
Among the guiding principles mentioned, the President of the AEB cited the following:<\/p>\n
1.- The banking system is one of the major assets of the Spanish economy, one of its competitive advantages. Promoting its improved functioning to strengthen that advantage is in the general interest. <\/p>\n
2.- The Spanish banking system is unique. All the institutions that comprise it essentially have the same functions and the same objectives: to generate value, drive the real economy and enhance society\u2019s well-being. The supervisory and regulatory authorities, with their own specific role, are an essential part of the banking system which they steer and lead, while also being jointly responsible for its proper functioning. <\/p>\n
3.- The Spanish banking system cannot be viewed in isolation, but as part of the European financial system, into which it is integrated and through which it participates in an increasingly interconnected global financial system. The European and global markets are the reference markets for institutions\u2019 strategic planning. <\/p>\n
4.- As part of the European internal market, the Spanish banking system must be governed and operate under the principles of an open market economy and free competition in order to promote efficiency in the allocation of resources. Competition is the engine of innovation, efficiency and the sustainable progress of the banking system. Competition is also the best means of achieving integration of the European financial market. Preserving that competition and a level playing field for all institutions in all markets is a fundamental responsibility of the economic authorities. <\/p>\n
5.- The basic objective of credit institutions is to create added economic value in the exercise of their specific activity. To this end, each institution defines and develops its own business strategy in order to strengthen its comparative advantages. In any case, the business strategy must be geared towards providing the customer with the best possible service and delivering the greatest value in meeting their financial needs. <\/p>\n
6.- One of the most characteristic functions of the banking system is risk management. The organisational and governance structure of institutions must therefore respond to this core task of assuming, assessing, managing and controlling risks. And, as a corollary of that task, establishing the economic and regulatory capital requirements needed to cover risks, ensuring their availability and the continuity of the business. <\/p>\n
7.- For an open market economy based on free enterprise to function properly\u2014that is, fairly and efficiently\u2014companies must adopt and incorporate appropriate corporate governance systems. The importance of the role played by financial markets and their globalisation makes this requirement even more necessary for financial institutions. Good governance is the foundation of freedom of enterprise and open markets. It is the assurance society is entitled to demand that the resources entrusted to companies are used solely to generate value, in a transparent and responsible manner, for shareholders and other social groups with a legitimate interest in them. <\/p>\n
Good governance of institutions must also ensure that the market receives the precise information needed to assess, monitor and disseminate the effectiveness and quality with which the company is managed and fulfils its obligations to society.<\/p>\n
8.- The responsibility of companies, in general, and of credit institutions, in particular, does not end with their shareholders, but extends to the whole of the society in which they operate, whose values they must embrace and respect. The specific way in which this corporate responsibility is voluntarily assumed forms part of each institution\u2019s strategy, becoming integrated into its intangible assets and reputation. <\/p>\n
9.- The stability of the financial system is the ultimate good that must be preserved at all costs. Maintaining it is a prior and overriding requirement above any other consideration. Stability is a shared responsibility of the economic authorities and the managers of financial institutions, who must therefore work closely together to achieve it. <\/p>\n
The President of the Spanish Banking Association (AEB), Miguel Mart\u00edn Fern\u00e1ndez, set out yesterday, during his address at the “New Economy Forum”, a series of guiding principles which, in his view, could serve as a guide for the activity of the Spanish banking system, which he described as one of the major assets of the Spanish economy due to the solid competitive advantages it provides.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","etiquetas":[287,294,590],"categorias-blog":[783],"class_list":["post-37312","blog-aeb","type-blog-aeb","status-publish","hentry","etiquetas-banca","etiquetas-banca-espanola","etiquetas-servicios-financieros","categorias-blog-presidency"],"yoast_head":"\n