A EUROMONEY SURVEY - MARCH 1996
BACKGROUND
The structure of Spanish legislation is comparable to that of leading worldwide economies. This is partly due to the demands of the European Union of which Spain is a member, but also due to the desire of the Spanish government to internationalize its financial markets. Liberalization in Spain in the last 10 years has been widespread and rapid.
LEGAL FRAMEWORK
The legal framework for the financial sector is based upon several important pieces of legislation. The central bank is responsible for a monetary policy based on economic stability and meeting the challenges of the changing financial services sector. It is also responsible for credit guidelines, banking discipline and questions of solvency.
The securities market regulation is based on the 1988 Securities Market Act and its amendments and provisions. This covers all aspects of the financial markets from listing to trading and control of markets and participants.
EQUITIES: SHARES
A share is a security which represents an equal division or proportional part of a corporation (sociedad anónima).