Spain: Capital Adequacy/BASEL

In Spain, Savings Banks are subject to the same regulatory treatment as other credit companies, insofar as their operations are concerned. However, as for their configuration, Saving Banks present a number of particularities, such as the obligation to allocate a high percentage of the profits they generate to financing social projects (the reason being their status of not-for-profit organizations) and their regional roots. These justify the existence of differences in their legal framework.

Law 19/2003, published in the Spanish Official Gazette dated 5^th July 2003, includes in its Third Additional Disposition the normative that, amending Spanish Law 13/1985 on investment coefficients, equity and information obligation of financial intermediaries, rules preferred securities under Spanish legislation