Fondo de Reestructuración Ordenada Bancaria

The Fondo de Reestructuración Ordenada Bancaria ( FROB ) is the Spanish state-owned bank rescue fund. The fund was created with 9 billion euros founded on 26 June 2009 and later expanded to 15 billion euros. The Fund may use this capital in order in the capital market to borrow up to 99 billion euros.

The management of the Fund is managed by a committee of nine persons. Four people suggests the Bank of Spain. In addition, one representative each from the Finance and Economy Ministry and three other people.

History

In December 2010, the Fund had already given 10.58 billion euros of Spanish savings banks. At the time, the Spanish approach is that Spanish savings banks to merge with economic problems to larger savings banks. For example, in December 2010 went together seven Spanish savings banks and formed the bank Bankia, the fourth largest bank in Spain.

In January 2011, the Spanish government decided that Spanish banks have core capital of eight percent. Banks can to rely on the state FROB.

In May 2012, Bankia was nationalized. The international consulting firms Roland Berger and Oliver Wyman were commissioned to carry out a bank stress test for the Spanish banking system after previous stress tests had lost credibility. Oliver Wyman is said to have encountered a capital needs 51-62 billion euros for the Spanish banks. The euro zone finance ministers agreed in June / July 2012 that the European Financial Stability Facility (EFSF ) through the issuance of bonds will absorb (up to 100 billion euros ) money on the capital market and type subject to conditions of the FROB, so that it can rekapitalsieren the Spanish Savings Banks. In July 2012, the first 30 billion euros were transferred to the Spanish state-owned bank rescue fund FROB by the now competent European Stability Mechanism.