AMENDMENT OF PUBLIC AND CONFIDENTIAL FINANCIAL REPORTINGFORMATS AND MODEL FINANCIAL STATEMENTS FOR CREDIT INSTITUTIONS BANK OF SPAIN CIRCULAR 2/2012 AMENDING CIRCULAR 4/2004 OF DECEMBER 22, 2004
Royal Decree-Law 2/2012, of February 3, 2012, reforming the financial industry (the subject of our “Corporate/Commercial Law Newsletter 5-2012” ), was published in the Official State Gazette on February 4, 2012.
The decree has now been implemented by Bank of Spain Circular 2/2012 of February 29, 2012, amending Circular 4/2004of December 22, 2004 on public and confidential financial reporting rules and model financial statements, published in the Official State Gazette on March 6, 2012. Besides implementing the provisions of Article 1 of the decree reforming the financial industry, Circular 2/2012 contains other amendments, such as a change to the definition of the transactions that must be treated as having "medium to high risk", designed to reflect the higher risk considered to exist in loans provided for land, property development or construction or property development, even where the real estate assets act as collateral.
2. PROPERTY DEVELOPMENTS CONSIDERED TO HAVE "MEDIUM TO HIGH RISK" 3. VALUE OF FORECLOSED REAL ESTATE ASSETS OR ASSETS RECEIVED IN PAYMENT OF DEBTS 4. NEW STATEMENTS AND IMPLEMENTATION PERIOD 5. CHANGES TO ANNEX X (SPECIAL ACCOUNTING RECORD OF MORTGAGE TRANSACTIONS)