When Pablo Hernández de Cos assumed the position of governor of the Bank of Spain just over half a year ago, he already showed his intention to turn the institution around. Now he has blacked out his objectives and measures to achieve them in what is the first strategic plan of the national central bank in its history. The plan, for the period 2020-2024, includes 19 actions aimed at achieving five objectives, including raising the influence of the institution and improving its reputation, much damaged by the financial crisis, and in particular by the collapse of savings banks .
“The plan will allow the Bank of Spain to adapt better to a changing economic, social and technological environment, and thus achieve greater efficiency and quality in the services it provides to society. In addition, it will be a fundamental element to unite the bank, contributing to set common objectives for all its employees ”, the agency justifies when presenting the plan, approved by the governing board of the institution on January 9. “It’s about everyone working to become a central bank of reference, more dynamic and committed to society,” adds Hernández de Cos in the foreword of the plan.
The strategic plan, a common practice in the business world, sets a total of five objectives. One of them is the improvement of the Bank of Spain’s ability to identify and react early to the risks to financial and economic stability, one of the weaknesses attributed to it during the years of bubble formation. The agency also intends to modernize to be more efficient and flexible, through actions such as a review of its organization and internal procedures, and boost the excellence of its workforce.
«Increase the capacity to influence our field of action». This is the fourth strategic objective defined by the team headed by Hernández de Cos, who, for example, has among its obsessions to raise the representation of the Bank of Spain in European and international institutions and has already managed to place Spanish positions in relevant positions of the community banking framework. Well, the institution wants to take advantage of its experience, knowledge and reputation in certain areas such as microdata and credit risk analysis and on-site inspection to consolidate, in the Eurosystem field, a reference institution in supervision prudential, particularly in credit and technological risks.
The fifth goal that Hernández de Cos sets for the central bank is “to generate more confidence in the Bank of Spain and more value for society.” To this end, it proposes, among other measures, to enhance the improvement of the entities’ behavior with their clients and to increase the transparency and accountability of the agency itself, «informing society with clarity, objectivity and regularity» about its functions, objectives and performances. “Improving confidence in the Bank of Spain involves increasing efforts in these tasks,” admits the supervisor.
The Bank of Spain management will make a quarterly follow-up report of the plan and will inform the governing board of the institution of its degree of execution every semester. In the equator of the plan, in mid-2022, the institution will review it and update or redesign it if necessary. .