In any event, the preamble to Law 11/2015 establishes that these arrangements for the allocation of functions should be assessed once – within two years – the implementation of the restructuring plans currently under way has been completed, in light of the experience acquired, with a view to achieving greater efficiency. 4  BIS central bankers’ speeches  All told, as regards the organisation of the traditional supervisory functions, namely solvency, conduct and investor protection, Spain retains a sectoral approach which, as indicated earlier, was abandoned some time back by our peers. Hence, the Banco de España retains supervisory competencies for the solvency of credit institutions and also for their conduct, as regards the marketing and selling of loan and deposit products. The CNMV, meanwhile, in addition to overseeing the functioning of markets, supervises the solvency and conduct of investment firms and other capital market intermediaries (such as investment fund management companies), and the commercialization of financial products classified as securities. Finally, the Directorate General for Insurance and Pension Funds oversees the solvency and conduct of companies in the insurance sector, along with the operations of pension funds and their management companies. These authorities also manage enquiries and claims services in their respective areas and are empowered to issue reports on disputes between the different institutions and their customers, although, as you know, such reports are not binding.
The outlook for monetary policy Substantial accommodation is still needed to secure the path of inflation convergence and this is reflected in our past monetary policy decisions. In parallel to winding down net purchases, we have strengthened our forward guidance on interest rates and bond reinvestments. This has allowed us to rotate the instruments used to set the policy stance, while leaving the stance itself broadly unchanged. Our forward guidance framework has been specifically designed to accompany the economy by facilitating needed adjustments in the policy stance as the outlook evolves. It works along three main dimensions. First, the state-based leg of our guidance ensures that interest rate expectations are anchored to our ultimate inflation objective, and thereby acts as an “automatic stabiliser” in the event of downside risks emerging. Second, the date-based leg provides extra information to focus rate expectations over the near term. Third, since our forward guidance on reinvestments is tied to our guidance on rates, adjustments to rate guidance automatically entail a change of the reinvestment horizon in the same direction. This reinforces the easing impact of a flatter expected rate path by compressing the term 4/6  BIS central bankers' speeches  premium component of longer-term interest rates. We will continue monitoring how banks can maintain healthy earning conditions while net interest margins are compressed. And, if necessary, we need to reflect on possible measures that can preserve the favourable implications of negative rates for the economy, while mitigating the side effects, if any.