According to a report by the Bank of Spain
Madrid, May 19. (Press Europe) –
Spain’s external position – banking, commercial and financial exposure – is concentrated in countries identified as ‘core’ to the UK’s Spanish banking system in particular, according to the report ‘Exposure of the Spanish economy and banking system to third countries’, published by the Bank of Spain on Friday.
In 2022, the body chaired by Pablo Hernandez de Cos has identified the United Kingdom, the United States, Mexico, Brazil, Turkey, Chile, Peru and Colombia as the primary third countries of the Spanish banking system.
The increasing internationalization of Spanish banking has increased the exposure of the Spanish economy to macro financial developments in those jurisdictions in which it has been implemented. The Bank of Spain annually carries out an exercise to identify third countries – ie from outside the European Economic Area (EEA) – that are materially connected to the Spanish banking system for counter-cyclical capital buffer purposes.
Among these, and according to the results of the study published on Friday, the exposure to the United Kingdom stands out, which ranks first in most of the variables studied – bank assets and liabilities, exports and imports of goods and services and direct foreign exchange. Portfolio investment.
Likewise, the United States is the second physical country to which the Spanish economy has the most exposure, both in terms of trade variables and investment flows. In fact, in the case of portfolio investing, it is the most exposed country among the materials.
Among emerging economies, Spain’s exposure to Brazil and Mexico in bank assets and liabilities and foreign direct investment originating in Spain stand out. Compared to the rest of the countries, exposure is much lower, being higher in the case of Chile and Turkey than in Colombia and Peru.