Regulation and supervision of the Spanish banking sector in the context of EMU: the importance of the Banking Union

This article analyses the impact the creation of the European Banking Union has had on the regulation and supervision of the Spanish banking sector, which requires the examination of the sector’s evolution since Spain joined the euro area. The article reviews the changes introduced following the adoption of the single currency in 1999. Four different periods can be distinguished since then: a) from joining the euro area to the start of the crisis in 2007; b) the crisis years up to the bailout of the banking sector with European funds in 2012; c) the period during which the conditions imposed by the Memorandum of Understanding (MoU) were introduced; and d) the period following the beginning of the Banking Union and the creation of the Single Supervisory Mechanism (SSM) in 2014 and the Single Resolution Mechanism (SRM) in 2015.