Evaluating Risk Management Practices and Banking System Stability: A Comparative Study of Spain Pre and Post-COVID-19 (2017–2023)

Abstract

Pakhlavon Orifjonov

This paper examines the role of banks in managing risk through diversification and information-based mechanisms, as well as the effectiveness of regulatory capital buffers in strengthening financial stability. It then evaluates the resilience of the Spanish banking sector across two periods: before the COVID-19 crisis (2017–2019) and after the initial recovery phase (2021–2023). Focusing on capital adequacy, liquidity positions, and profitability, the study relies on official publications of the Banco de España and the IMF to identify trends and structural changes in Spain’s banking environment. The findings indicate that regulatory reforms, strong capital positions, and liquidity support measures contributed significantly to the sector’s post-pandemic resilience.

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