Banking Crisis: A Spanish Case in the International Horizon

This article discusses and distinguishes the banking sector of Spain from other shadow banking systems. Spanish and Chinese banks, and not American banks, are now among the top banks in the world. Why is it that Spanish banks were able to avert the financial crisis and, in fact, move ahead in global rankings? The answer, according to the authors, is found in the strict regulatory environment, competent risk management, lack of perverse incentives, control over leverage, and transparency.