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Debt crisis pushes banks to concentrations


Die Caja Madrid nimmt bald eine Sonderrolle ein. Quelle: Reuters

Caja Madrid is now a special role. Source: Reuters

HB MADRID. By this step, the institution may exempt from the stranglehold of debt and help Spain to return to economic growth. In addition, paves the first time a merger of listed financial institutions. The Spanish retail bank Sabadell checks Friday, according to a merger with smaller rival Guipuzcoano.

The Spanish government supports the merger of the money through a fund houses. The central bank will reduce the number of savings banks by mid-year to around 15 of 45.

The financial and property crisis, the traditionally strong in the mortgage business with dedicated money houses into trouble and increased pressure to consolidate.

Caja Madrid will go on future problems, new size from the road. The savings bank Bancaja is through the integration of the largest of its kind in Spain and, as the third largest money house of the Mediterranean country. A banking analyst welcomed the move: "This is a good strategy of Caja Madrid".

The by former IMF director Rodrigo Rato guided Caja Madrid’s goal is for both institutions to keep their own names after the merger, the balance sheet and legal structures. Caja Madrid sources said demand and Bancaja 4.4 to 4.5 billion euros in aid funds to the Central Bank of the country. The restructuring fund was established to promote mergers in the industry and to strengthen the banking sector. The Spanish government under the 45 savings banks in the country initiated a process of consolidation to offset weaker money houses. The central bank has to support to set up a fund that can be extended to up to 90 billion euros.

The retail bank Sabadell attracts a Guipuzcoano acquisition of a share exchange considered. is "There were meetings between Sabadell and Guipuzcoano and examined a merger, a person familiar with the negotiations said on the night of Friday, without giving further details. A bank analyst said it was no surprise that Sabadell actively participate in the consolidation process. The bank had repeatedly announced its intention to play a role.

At the top of the Spanish banks BBVA and Santander are. Santander braves the crisis so far been successful in the Iberian peninsula, even by strong growth in Brazil. Nevertheless, the Board Chairman Emilio Botin is now pointed out that the Spanish financial system needed serious reform. It is feared that losing small Spanish Institute of access to financial markets.

The collapse of the property market has dropped the Iberian banks sitting on debts of more than € 300 billion of property owners.