BDE Publishes Circular on Accounting Regime of Credit Institutions
BDE issued Circular 4/2019 to credit institutions on rules of public and reserved financial information and on models of financial statements. This new circular, which constitutes the development of the Commercial Code for these establishments, maintains the convergence of the national accounting regulations with the International Financial Reporting Standards adopted by EU (IFRS-EU), in accordance with the provisions of the Regulation (EC) No 1606/2002 on the application of international accounting standards (IAS Regulation). In this way, BDE continues the strategy of compatibility of the accounting regime of the supervised entities with the most advanced accounting criteria of the IFRS-EU, respecting the principles of the Commercial Code. In particular, the criteria of IFRS-EU 9, on financial instruments, are incorporated into the accounting regulations of the establishments. This circular entered into force on January 01, 2020.
This circular, which constitutes the accounting regime of financial credit establishments, determines the documents that these establishments and their groups have to publish. This circular consists of fifteen standards, an additional provision, three transitional provisions, and a final provision. The key topics covered in the circular are related to public financial information, reserved financial information, internal accounting development and management control, and presentation of financial information at BDE. In accordance with Title II of Law 5/2015 on the promotion of business financing, this circular takes as reference the accounting regulations of credit institutions, either by setting similar criteria, or by referring directly to the rules of Circular 4/2017 on standards of public and reserved financial information and models of financial statements. The differences in the nature, scale, and complexity of the activities of the establishments with respect to credit institutions translate into a simplified regime of financial statement requirements, consisting of a subset of the public and reserved financial statements of credit institutions, with, in some cases, a lower shipping frequency or a longer maximum period of remission.
Related Link (in Spanish): Circular 4/2019
Effective Date: January 01, 2020
Keywords: Europe, EU, Spain, Banking, Accounting, IFRS-EU, Circular 4/2019, Financial Instruments, IFRS 9, BDE
Featured Experts
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Related Articles
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
CBE Issues Additional Measures to Ease Disruptions from Pandemic
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
