FSB has completed and published its peer reviews of Spain and Italy. It notes Spain weathered the initial financial crisis relatively well, but has suffered since, when the risks the Financial Sector Assessment Program (FSAP) identified on the effects of rapid growth in the housing sector materialised. The capital requirements and buffers Spain had adopted were not enough for banks to weather the crisis. FSB welcomes recent action by Spain but says some of it was necessary only because the country had not addressed structural weaknesses earlier. In relation to Italy, the report notes much resilience to the crisis, which it attributes to the traditional, relationship-oriented business model and stable retail funding base of Italian banks, and regulation that encouraged responsible lending and discouraged risky participations in securitisations and structured investment vehicles. The Italian authorities have also made good progress in addressing FSAP recommendations. (Source: 04/2011, 05/2011, Peer Review of Spain, Peer Review of Italy)