savings banks merger

With the operation, the Barcelona-based bank, has more than 6,000 branches throughout Spain for the first time. CaixaBank, which tops the Spanish retail banking market, acquired Banca Cívica in August, which was the merger of five savings banks: Caja Navarra, Cajasol, Caja Guadalajara, Caja Canarias and Caja Burgos. From now on, all the branches, ATMs, IT systems, accounts and other financial products from all the five previous savings banks will be integrated into CaixaBank’s business. CaixaBank has adapted 1,170 ATMs from Banca Cívica, reaching a total number of 10,000 ATMs distributed throughout Spain.

The bank created from Catalan savings bank CatalunyaCaixa is expected to be sold within the next two months. CatalunyaCaixa was intervened by the Bank of Spain last September 30th, as it could not reach the required core capital. The Spanish Fund for Orderly Bank Restructuring (FROB), owned by the Spanish State, currently owns 89.74% of CatalunyaBanc. The FROB has decided to disinvest in the Catalan bank, which starts a competition process that will sell 100% of CatalunyaBanc’s shares.

A Barcelona-based newspaper announced in its Tuesday edition that the two Catalan savings banks would see a state intervention and would be nationalised by the Spanish Government and the Bank of Spain this summer. CatalunyaCaixa has denied the claims. Unnim also denied the rumours and reminded the press of the 30th September deadline set by the Bank of Spain to restructure its business and find additional capital.

The chairman of BAA Angela Knight urged savings banks to reconsider their strategy and find diverse ways to finance themselves. The insisted that narrowing the market to a single territory is increasing their exposure to the economic context.

The new savings bank group will be called Mare Nostrum and it will be the 4th in Spain. The 4 savings banks will keep their brand and sum up more than 4 million clients.