Bank Of Spain Research Articles

Tourist destinations masked in the symbolic constructs of «Money Heist» (Netflix, 2017-2021)

The popular Spanish fiction series Money Heist has been seen in more than 190 countries and has won the International Emmy Award for Best Drama. In 41 episodes over five seasons, a group of thieves dressed in red overalls and concealing their faces behind Salvador Dalí masks break into the Royal Mint of Spain and the Bank of Spain with the intention of carrying out an ambitious heist at each location. There are almost no product placements of real-life tourist attractions in the narrative structure of the series. This article discusses whether certain symbolic constructs identified in Money Heist could act as tourism inducers in the same way as the placement of real-life locations, a practice explored extensively in recent research. This study finds a considerable increase in tourist numbers to the Royal Mint of Spain that coincided with a massive rise in searches on YouTube for identifying elements of the series and a significant correlation between those elements and Spanish tourist destinations on Instagram. It thus offers evidence of the presence of symbolic constructs that could serve as inducers of both domestic and international tourism to Madrid.

Rural Depopulation in Spain: A Delphi Analysis on the Need for the Reorientation of Public Policies

In recent years, various plans have been implemented by the central government with the aim of promoting more coordinated policies to address depopulation. The severity of this challenge in Spain, which has continued to intensify, underscores the need for more decisive action. The information presented in this research is derived from a survey conducted in two rounds with 35 experts in the field, following the Delphi methodology. The general objective was to assess the opinions of an expert panel on relevant aspects concerning policies to combat depopulation in Spain. Firstly, confirming the significance of the depopulation challenge; secondly, evaluating whether the actions taken so far have been insufficient and poorly coordinated, necessitating a reconsideration; and finally, establishing a prioritization of actions that should be implemented without further delay, encompassing various areas (financing, taxation, coordination, etc.), are among the many measures advocated by the Spanish Federation of Municipalities and Provinces (FEMP) and proposed in the recent diagnoses by highly authoritative institutions such as the Bank of Spain or the Economic and Social Council of Spain (CES).

Regulatory Implications of the Supervision and Management of Liquidity Risk: An Analysis of Recent Developments in Spanish Financial Institutions

The aim of this paper is to analyze the evolution of bank liquidity regulations, considering the global regulatory framework applicable to financial institutions, from the beginning of the banking and liquidity crisis in 2007–2008 to the present. The new liquidity requirements under Basel III regulations are defined. An analysis is made of the recent evolution of credit institutions in Spain from different banking prisms to determine how the new banking regulation and supervision, following the start of supervisory powers by the European Central Bank at the end of 2014, has affected them. The methodology applied has been firstly the literature review, followed by a compilation and analysis of the financial and statistical evidence available on the main Spanish financial institutions, from the European Central Bank and the Bank of Spain, as well as information published by other agencies and the financial institutions themselves. It concludes with a reflection and analysis of the outlook for the sector once the most recent impacts, derived from COVID-19, and the supply crisis with the rise in global inflation and the increase in interest rates have been overcome. It can be stated that credit institutions in Spain have significantly improved their liquidity position over the last 15 years.

Innovation and happiness management enhancing transcendence at work in the banking sector in Spain

PurposeThe purpose of the paper is to delve into innovation and happiness management linked to the definition of transcendence at work. The paper analyses in the context of innovation and happiness management the relation of the three dimensions taken from Khari and Sinha (2020: Sense of we-ness, self-connectedness and work as a service. The paper also proposed indicators to applied transcendence and moral competencies to the banking sector guiding behaviour toward successful experiences at work as an antecedent of both, transcendence and employees´ performance.Design/methodology/approachThe article starts with a VOSviewer-based bibliometric analysis to examine the recent development of happiness management as an emergent topic of research. A co-word analysis served to identify that the main research theme related to the topic is transcendence at work. The theoretical framework serves for developing a conceptual model that is analysed by taking structural equations modelling (SEM) as the method and partial least squares (PLS) as the technique. To test the hypotheses, the authors employed a sample of 354 employees from the main banks in Spain in 2021 (Santander, Banco Bilbao Vizcaya Argentaria (BBVA), CaixaBank, Bankia and Sabadell).FindingsThe results confirm that Innovation and happiness management is related to moral competencies, which refer to the set of knowledge, skills and abilities that facilitate ethical behaviour in the banking sector. Innovation and happiness management include individual attributes for good performance in each job; this research is in line with the prominent call in the literature to consider moral competencies in human resources management.Originality/valueOriginality lies on the answer of the question: what is the role of employee transcendence in the turbulent banking sector today? This paper seeks to approach and measure the relation of innovation, happiness and transcendence at work, Transcendence at work often arises when individuals connect their work to a higher purpose or mission, that connection is based on the idea that any effort to improve any of these three attributes provides successful solutions for the complex banking sector's performance.

Evaluation of batch mesophilic anaerobic digestion of waste Euro banknotes for methane Production: Preliminary studies and kinetic approach

The European Central Bank is striving to find environmentally friendly alternative methods of waste disposal. In 2020, it decided to end the disposal of Waste Euro Banknotes (W€B) in landfills and planned to use them for recycling and/or energy recovery. Despite being recognized as an effective tool in a circular economy model, there are no reported studies on the use of W€B as a substrate in anaerobic digestion (AD). Thus, the aim of this research was to assess the viability of W€B to be converted into high-value-added energy products (mainly methane) through AD. W€B (€10 and €20 denominations) provided by the Bank of Spain were used. Biochemical methane potential (BMP) tests of pre-treated (grinded) and untreated W€B were assessed at mesophilic temperature. The ultimate methane yield was considerably higher for pre-treated W€B (334 ± 23 NmL CH4 g VS-1added) than for untreated W€B (297 ± 14 NmL CH4 g VS-1added). The Logistic or Sigmoidal kinetic model adequately fit the experimental data and allowed for obtaining the kinetic parameters of each case studied. In this sense, an increase of 22.4 % in the maximum methane production rate (Rmax) was observed for the pre-treated W€B (52.5 ± 0.9 mL CH4 (g VS·d)-1 compared to the untreated W€B (16.2 ± 1.8 mL CH4 (g VS·d)-1). According to the obtained results, AD may be a good alternative for the energetic valorization and recycling of W€B.

Risk Structure of Banks in Spain: Do BHCs Have Greater Cost of Debt?

Holding companies legally separate the assets and owners of a company creating a layer of liability protection. Theoretically, this feature lowers the risk attributable to holding companies, enabling them to offer lower-cost debts compared to stand-alone alternatives. However, no study has ever tested this hypothesis due to its technical and practical difficulties. Testing this hypothesis requires a separate classification of holding and stand-alone companies’ outstanding debts to compare their risk spreads, controlling the bonds’ risk ranking, maturities, and issue sizes. Further, a model is needed to make the callable bond spreads with unknown maturity dates comparable to non-callable bonds. This work is the first attempt to evaluate the risk spreads of stand-alone banks and bank holding companies in Spain by including all outstanding rated bonds offered by Spanish banks. In order to make callable bond spreads comparable with noncallable bond spreads, we obtained the option-adjusted spreads for the bonds using a lattice option-pricing model that treats the callable bonds as a bond with embedded options. We then regressed to option-adjusted spreads on control variables and ownership structure dummy to see if there exists a statistically and economically significant coefficient for the introduced dummy variable. We found that bank-holding company bonds have higher risk spreads compared to the stand-alone alternatives in Spain. This may be attributable to the characteristics of holding companies that introduce other risks that offset the gains obtained from the added layer of liability protection.

Financial Knowledge and Private Health Insurance: Does Age Matter?

(1) Background: The paper focuses on the relationship between financial knowledge (FK) and holding private health insurance (PHI), and also focuses on the effect of age on the aforementioned relationship. (2) Method: The study was carried out on a sample of 8055 individuals taken from the 2016 Financial Competences Survey (the only one available), prepared by the Bank of Spain. Unlike previous studies that limited themselves to considering numeracy as a proxy for FK, in this study, two levels of FK-basic and advanced-are considered. (3) Results: The results indicate that a higher level of FK, specifically advanced FK, increases the probability of an individual holding PHI. Regarding age, it has been observed that the relationship between FK and PHI is only relevant in middle and older age, but not in younger and adults. Therefore, it is appropriate to differentiate between basic and advanced FK, and we confirm that age exerts a moderating effect on the influence of FK on PHI. (4) Conclusion: We conclude that FK-specifically, advanced FK for middle-aged and older people-is relevant to the likelihood of an individual holding PHI, which can improve health and financial wellbeing.

Income smoothing management and loan loss provisions in the banking system

PurposeThe “public interest” of financial institutions was used as an argument to intervene in accounting practices. The Bank of Spain's standard was not compatible with International Accounting Standard (henceforth IAS) 39 and the Spanish banking sector had become one of the most provisioned in Europe. This makes it an interesting case study of the relationship between provisioning and income smoothing. The 2008 financial crisis revealed that provisions were insufficient and a reinforcement regulation process began in 2012. This paper aims to examine whether, since 2012, the Bank of Spain's regulatory effort on impairment accounting standards has induced less income smoothing, correcting its countercyclical effect.Design/methodology/approachA regression model is applied during the period 2005–2020, to test whether there is a trend change in the correlation between the level of provisions and annual earnings in 2012.FindingsThe results show that from 2012 onwards (when the Bank of Spain reinforced the regulation on provisioning), there was a correction in income smoothing behaviour.Originality/valueThis study provides empirical evidence that reinforces the claim that accounting policy can affect decision-making accounting practices, in this particular case, at the Bank of Spain.

Bank customers complaints, financial knowledge and gender

ABSTRACT This work aims to analyse the relationship between financial knowledge and the propensity of consumers to complain in the event of disagreement with a financial institution. A sample of 8,286 individuals from the Survey of Financial Competencies elaborated by the Bank of Spain is analysed. The results reveal that individuals with greater financial knowledge show a greater propensity to complain, presumably due to their heightened ability to detect possible fraud or abusive practices by financial entities. Gender itself is not relevant in the propensity to complain. However, when the sample is divided by gender, financial knowledge is more relevant for women than men. Additionally, the results reveal that in the female sample, propensity to complain is affected by self-confidence, in contrast to the male sample. The results suggest that the authorities should take practical steps to include financial knowledge in the educational curriculum.

The consolidation of public banking in Spain: from the 1970s crisis to the 2008 crisis

This article contributes to the literature analysing the role of public banks in crises. Taking the case of Spain, it analyses the behaviour of the public bank (ICO) between 1971 and 2015, specifically during two crises: the crisis of the 1970s, when Spain was an economically backward country coming out of a dictatorship; and that of 2008–13, by which time it had integrated into the international economy. Public credit underwent sweeping privatization in 1991, which translated into major downsizing. From then on, a gradual process of modernization began, mainly characterized by institutional changes in governance and access to resources. Our results indicate that public and private credit behave differently during recessions. Private credit always remains closely synchronized with the business cycle, but public credit less so.

Multi-component cord blood banking: a proof-of-concept international exercise.

Most public cord blood (CB) banks currently discard more than 80% of umbilical CB units not suitable for hemopoietic stem cell transplant due to low stem cell count. Although CB platelets, plasma, and red blood cells have been used for experimental allogeneic applications in wound healing, corneal ulcer treatment, and neonatal transfusion, no standard procedures for their preparation have been defined internationally. A network of 12 public CB banks in Spain, Italy, Greece, the UK, and Singapore developed a protocol to validate a procedure for the routine production of CB platelet concentrate (CB-PC), CB platelet-poor plasma (CB-PPP), and CB leukoreduced red blood cells (CB-LR-RBC) using locally available equipment and the commercial BioNest ABC and EF medical devices. CB units with >50 mL volume (excluding anticoagulant) and ≥150×109/L platelets were double centrifuged to obtain CB-PC, CB-PPP, and CB-RBC. The CB-RBC were diluted with saline-adenine-glucose-mannitol (SAGM), leukoreduced by filtration, stored at 2-6°C, and tested for hemolysis and potassium (K+) release over 15 days, with gamma irradiation performed on day 14. A set of acceptance criteria was pre-defined. This was for CB-PC: volume ≥5 mL and platelet count 800-1,200×109/L; for CB-PPP: platelet count <50×109/L; and for CB-LR-RBC: volume ≥20 mL, hematocrit 55-65%, residual leukocytes <0.2×106/unit, and hemolysis ≤0.8%. Eight CB banks completed the validation exercise. Compliance with acceptance criteria was 99% for minimum volume and 86.1% for platelet count in CB-PC, and 90% for platelet count in CB-PPP. Compliance in CB-LR-RBC was 85.7% for minimum volume, 98.9% for residual leukocytes, and 90% for hematocrit. Compliance for hemolysis ≤0.8% decreased from 89.0 to 63.2% from day 0 to 15. K+ release increased from 3.0±1.8 to 25.0±7.0 mmol/L from day 0 to 15, respectively. The MultiCord12 protocol was a useful tool to develop preliminary standardization of CB-PC, CB-PPP, and CB-LR-RBC.

АНАЛІЗ БАНКІВСЬКОЇ СИСТЕМИ ІСПАНІЇ

This scientific work is devoted to the analysis of the banking system of the Kingdom of Spain. The relevance of the topic is due to the state and development of the Spanish banking sector, and the economy as a whole, after the crisis phenomena such as the financial crisis of 2008, the crisis of the Spanish economy and the corona crisis. The article examines the history of the development of the banking system: from its origin – the foundation of the Central Bank of Spain "Banco Nacional de San Carlos" to the modern innovation stage. The levels of the Spanish banking system are indicated. The five largest and most important banks in Spain are identified and described, as well as the Central Bank of Spain – Banco de España – its foundation, management and main tasks. A dynamic description of the current state of indicators of the Spanish banking system is given, in particular the available number of banks and branches, financial results: interest income, interest expenses, non-interest income, non-interest expenses and retained earnings/loss. The article examines the credit market, which is structured around banks, savings banks and credit cooperatives, the essence and role of credit through the structure of the loan portfolio (individuals and legal entities) of Spanish banks. Attention is drawn to the features, advantages and disadvantages of short-and long-term lending by Spanish banks. The deposit market, the essence and role of the deposit, the structure of the deposit portfolio (individuals and legal entities) of Spanish banks, as well as attracted deposits for a period of 6 Months-1 year, 1–5 years) are considered separately by individuals and legal entities. According to the Bank of Spain, its impact on the banking sector, the dependence of the rate value on the European Central Bank (ECB) and changes in the structure of bank customer funds due to the level of interest rates were studied. Restructuring measures to combat problem loans for the restoration of the banking sector are presented. Conclusions are drawn about the current state of the banking system of the Kingdom of Spain.

P-389 Elevated BMI in oocyte donors or recipients is associated with a higher risk of miscarriage after blastocyst transfer: a multicenter analysis of 1544 procedures

Abstract Study question Is an elevated BMI in either oocyte donors or recipients associated with a higher risk of miscarriage after blastocyst transfer? Summary answer Overweight in oocyte donors and/or obesity in recipients are associated with a 2X-higher risk of miscarriage in egg donation cycles. What is known already Several basic-science, clinical and epidemiological studies revealed an association between BMI and infertility, suggesting a J-shaped relationship: both underweight and especially overweight/obese women can suffer from reproductive impairments. In particular, overweight-obese women are more prone to suffer from a miscarriage even when euploid blastocysts are transferred. Yet, it is still unclear whether this is the consequence of an altered oocyte (and then embryonic) competence and/or an impaired endometrial receptivity. In this context, oocyte donation cycles represent the ideal clinical setting to shed some light on an issue with numerous social, clinical, and logistic implications. Study design, size, duration Retrospective study including 1544 blastocyst single embryo transfers (SETs) conducted in oocyte donation cycles (Jan2019-May2021). All oocytes were vitrified at 2 egg banks in Spain and warmed at 8 clinics part of the same network. The primary outcome was the miscarriage rate (&amp;lt;22nd gestational weeks) per clinical pregnancy according to donors’ and/or recipients’ BMI. Four BMI clusters were defined (underweight: &amp;lt;18.5; normal-weight: 18.5-24.9; over-weight: 25-30; obese: &amp;gt;30). Participants/materials, setting, methods 66.1%,4.9%,20.3% and 8.7% of SETs were conducted in normal-weight, underweight, overweight, and obese recipients. 81.4%,4.5% and 14.1% of SETs with oocytes derived from normal-weight, underweight, and overweight donors. The putative confounders investigated were egg bank, IVF center, fresh/vitrified-warmed SET, blastocyst quality/day, recipient/donor age, endometrial preparation protocol, number of consecutive SET. Before SET, we requested blood test for infections and TORCH, thyroid function, coagulation and immunological assessment, cardiological, gynecologic and breast evaluation. Main results and the role of chance Overweight-obese recipients were slightly older (43.0±4.0yr) than normal-weight ones (42.2±3.8yr; p &amp;lt; 0.01). Similarly, overweight donors were slightly older (27.5±4.5yr) than normal-weight ones (26.4±4.3yr; p &amp;lt; 0.01). Therefore, all outcomes were adjusted for recipients’/donors’ age. The overall positive pregnancy rate per blastocyst SET and biochemical pregnancy loss rate were 51.8% and 12.6%. No association was reported between either recipients’ or donors’ BMI and both these secondary outcomes. Conversely, higher recipients’ and donors’ BMI were significantly associated with a higher risk of miscarriage after blastocyst SET (multivariate-OR 1.05, 95%CI 1.01-1.1, adjusted-p=0.05; multivariate-OR 1.1, 95%CI 1.04-1.2, adjusted-p&amp;lt;0.01). The most significant differences were reported for obese versus normal-weight recipients (N = 18/64,28.1% versus N = 73/448,16.3%; p = 0.03, power=60%; multivariate-OR 1.8, 95%CI 1.01-3.4, adjusted-p=0.05) and for overweight versus normo-weight donors (N = 31/111,27.9% versus N = 94/561,16.8%; p &amp;lt; 0.01, power=73%; multivariate-OR 1.9, 95%CI 1.16-3.0, adjusted-p=0.01). In the 14 clinical pregnancies where the oocytes derived from overweight donors and the blastocysts were transferred to obese women the miscarriage rate was 50%; the same outcome in normal-weight recipients using oocytes from normal-weight donors was 15% (N = 55/366; p &amp;lt; 0.01, power=85%; OR 5.6, 95%CI 1.8-16.8, p &amp;lt; 0.01). The data were similar across both egg banks and all IVF centers. All other parameters assessed were not associated with the primary outcome under investigation. Limitations, reasons for caution The study is retrospective, and the sample size in each sub-group shall be increased. Moreover, BMI is a gross marker of an individual’s metabolic status. Future studies on more accurate markers like percentage and localization of adipose tissue assessed through techniques like bioelectrical impedance analyses are desirable. Wider implications of the findings Both oocyte competence and endometrial receptivity might be impaired from unbalanced nutritional intakes. More studies on this topic are certainly required. Whenever possible, nutritional/lifestyle adjustments should be encouraged in obese patients because of their higher risk of miscarriage, and a BMI limit should be considered also when recruiting egg donors. Trial registration number Not applicable

PIGS ECONOMIES: BAIL-OUT VS. BAIL-IN

This paper analyzes bail-out and bail-in programs in the Eurozone periphery economies after the transformation of the global crisis into a debt crisis. Continuous rise of debt service costs was leading PIGS economies (Portugal, Ireland, Greece, Spain) either to abandon of Eurozone or to negotiate rescue programs. Using Panel corrected standard errors (PCSE) method, the research shows that bail-out programs had a negative effect on GDP growth in PIGS economies in the period 2011-2019, as the consequence of crowding-out effects. However, the results showed that bail-out programs could positively affect fiscal variables. An alternative solution is the bail-in mechanism, which is a sustainable mechanism that does not burden taxpayers. Based on examples of banks in Spain and Portugal, results show that using bail-in programs, panic and contagion effects could be avoided; however, in the case of future crisis, the effects of bail-in programs on the real economy still need to be examined.

The narrative about the economy as a shadow forecast: an analysis using Bank of Spain quarterly reports

ABSTRACT This paper constructs a text-based indicator that reflects the sentiment of the Bank of Spain economic outlook reports. Our sentiment indicator mimics very closely the first release of the GDP growth rate, which is published after the publication of the reports, and the Bank of Spain’s quarterly forecasts of the GDP growth rate. In addition, not only the narrative is consistent with the quantitative projections, but it also complements them by discussing information which is not directly reflected in the point forecasts, and may put on the table potential risks that will be included in the numerical projections of the next quarter. Thus, while the quantitative projections tend to underestimate the GDP growth rate especially during upturns, the narrative allows to outweigh this conservative bias. Overall, from a Central Bank’s communication perspective, it is the combination of quantitative forecast and narrative that provides a more precise picture of expected economic activity.

Women and financial literacy in spain. Does marital status matter?

ABSTRACT This study focuses on the joint effect of gender and marital status on financial literacy. The study is based on the data of 7,456 adults who responded to the Financial Competencies Survey (2016), conducted by the Bank of Spain. The results revealed that married/couple women have a lower level of financial literacy than married/couple men, perhaps because men often make decisions regarding family finances, while women are often in charge of other homework. This may have important consequences for the financial autonomy of women of all ages, especially as they aging.

Stress at Work: Can the Spiritual Dimension Reduce It? An Approach From the Banking Sector.

Stress at work motivated by pressures and labour control can alter the behaviour of workers. Since the 2008 economic crisis, banking in Spain has suffered a series of massive lay-offs to adjust to the new market situation. This new financial restructuring has meant greater labour pressure to achieve the required results. Faced with this adversity, employees have experienced greater stress at work. This work analyses the effect of reinforcing employees’ spiritual dimension to transcend and correctly manage work pressure and stress at work. In so doing, 601 employees from 294 financial entities of five large IBEX banks participated in this pilot project. Through a participatory methodology based on a review of the literature, the study indicators have been delimited. The data obtained have been treated using the SEM-PLS method. The results propose the incorporation of a series of tools to reinforce values and transcendent employee behaviour.

Job creation and investment in imperfect financial and labor markets

Purpose This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see which restriction is more severe, and thus assess which is more powerful in creating permanent employment if it were removed. Design/methodology/approach A structural estimation is performed. The policy rules of the dynamic programming model are integrated into a simulated maximum likelihood procedure by which the model parameters are recovered. Data come from the CBBE (Balance Sheet data from the Bank of Spain). Identification of key parameters comes mainly from the observation of debt variation and sluggish adjustment to permanent labor. Findings Long-run permanent employment increases up to 69% when financial constraints are removed, whereas permanent employment only increases up to 54% when employment protection or firing costs are eliminated. The main finding of this paper is that the long-run expansion of permanent employment is larger when financial imperfections are removed than when firing costs are removed, even when there are important wage increases that moderate these employment expansions. Social implications The removal of firing costs has been suggested by several economists as a result of the analysis of labor market imperfections. These policies, however, face the strong opposition of labor unions. This paper shows that the goals of permanent job creation can be accomplished without removing employment protection but by means of enhancing financial access to firms. Originality/value The connection between financial constraints and employment has been studied in recent years, motivated by the Great Recession. However, there is no assessment of how financial and labor market imperfections compare with each other to restrict permanent job creation. This comparison is crucial for policy analysis. This study is an attempt to fill out this gap in the economic literature. No previous research has attempted to perform this very important comparison.

The progress of Corporate Social Responsibility from a Gender perspective through the Change Management

In recent years, one of the main priorities of companies has been to adapt their business activity and commercial strategy to be aligned with the 17 Sustainable Development Goals (SDGs) established by the United Nations, in its “2030 Agenda”. To overcome this challenge, companies develop and implement Corporate Social Responsibility (CSR) strategies. One of the objectives that have generated the most interest is Goal 5 dedicated to promoting gender equality. This study analyzes the gender equality evolution in companies as part of CSR through Change Management (CM). To do this, a longitudinal study was carried in the last ten years with an analysis of the content of various reports from four of the most important banks in Spain. The results corroborate the growing interest of the largest Spanish financial institutions in gender equality. Being women's access to employment, salary gap information, and the presence of women on the board of directors a priority. Likewise, the CM appears as a lever for the achievement of the SDGs by the entities, gaining relevance in recent years, and being linked to the strategic approach and business objectives for the development of CSR.

Carles Sudrià and Yolanda Blasco-Martel (eds.). The Origins of Modern Banking in Spain: The Role of Monetary Plurality. Abingdon, New York, Routledge, 2019, 208 pp.

Carles Sudrià and Yolanda Blasco-Martel (eds.). The Origins of Modern Banking in Spain: The Role of Monetary Plurality. Abingdon, New York, Routledge, 2019, 208 pp.