Banco de España strengthens public trust, financial stability, and digital euro

In its 2025 Institutional Report, the Banco de España outlines a renewed commitment to transparency and public engagement, positioning the publication as a central pillar of its accountability to citizens.

Governor José Luis Escrivá emphasized the institution's efforts to explain its actions, impact, and challenges in a more accessible and understandable language, moving away from technical jargon.

This strategic shift is part of the Banco de España's Strategic Plan 2030, aiming to foster greater societal trust.

The report details significant advancements in economic analysis, leveraging high-frequency indicators to better anticipate economic changes and monitor the transmission of monetary policy decisions.

Furthermore, it highlights the central bank's active participation in updating monetary policy, which included four interest rate reductions by the Eurosystem in the first half of 2025, bringing the main official rate to 2 percent, thereby alleviating financial pressures.

Deputy Governor Soledad Núñez highlighted the Spanish banking system's robust position in 2025, noting elevated liquidity, record profitability, and capital ratios well above regulatory minimums.

The Banco de España actively participated in the European Banking Authority's biennial stress tests, with Spanish groups achieving positive results.

The institution also intensified its focus on integrating climate risk into banks' management frameworks and advancing sustainable finance initiatives, including the launch of an Environmental, Social, and Governance Office.

Significant technological transformation is underway, with nearly half of staff accessing generative AI.

Progress on the digital euro project continued, with a pilot test anticipated in 2027, aiming to provide a free, pan-euro area digital payment method.