Remember that the portfolios selected for the review amount to 58% of the risk-weighted assets of the 128 institutions, i.e. some € trillion, which will involve reviewing in detail an average of 1,250 credit records per bank. In Spain, we calculate that the review will affect assets valued at € billion, and will require the analysis of more than 21,000 loan records. The second part of the assessment will consist of the stress test. The aim of this exercise is to analyse the ability of banks to maintain appropriate solvency levels in two different scenarios: a baseline or more likely scenario, and another alternative, highly adverse scenario, with less likelihood of occurrence. The stress test is being developed in collaboration with the European Banking Authority (EBA). The methodology of the exercise is currently at the review stage following the finalisation some days back of the public consultation process. The final version of the methodology and details of the macroeconomic scenarios are expected to be published towards the end of this month. The implementation and quality control stages of the stress test will commence from next month, meaning there will be some overlap with the asset review exercise. The outcome of the comprehensive assessment will be made known in late October, and will include both the results of the asset quality analysis and of the stress test.
Fernando Restoy: Challenges for the Spanish banking sector Closing address by Mr Fernando Restoy, Deputy Governor of the Bank of Spain, at the XXI Meeting of the Financial Sector, organised by ABC, Deloitte and Sociedad de Tasación, Madrid, 1 April 2014. *  *  *  Good morning. Thank you, Paco, for your kind words. It’s a great pleasure for me to be with you this year for the closure of the 21st edition of the Financial Sector Meeting organised by ABC, Deloitte and Sociedad de Tasación, in which the Banco de España has traditionally taken part. The conference has had a very full day, in which the country’s main financial institutions have had their say. Allow me to bring some thoughts to the discussion on the main challenges for the banking sector ahead of the changes in the regulatory and supervisory framework and, most particularly, ahead of the banking union. 1. Introduction  Looking back, I believe such significant structural transformations as those currently sweeping the banking industry are almost unprecedented. At present, the banking sector must face a host of highly relevant changes on various fronts.