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16 November 2010

El País: The Bank of Spain calls for an urgent restructuring of the Spanish Saving Banks


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Financial markets want to see the reform of Spanish savings banks finalised. The reality is that from January 2009 until September 2010 only 5.15% of Spanish savings banks have closed their offices and there are still more than 9,188 branches operating on an inefficient basis.


The Spanish savings bank sector complains that the restructuring task is arduous and there is still a lack of adaptation of the regional legislation of several communities, including Madrid. "It's the biggest change in the 300-year life of the Spanish savings banks," said Fernando Ruiz, chairman of Deloitte Spain.

The savings banks are calling for patience because 40 of the total 45 savings banks are currently under mergers talks. Merger operations are most advanced in Catalonia.

Fernández Ordóñez, governor of Bank of Spain, stressed that "the current pressure on the restructuring of the savings banks it is due to the need to reduce costs and increase efficiency”.
 
 
 
 



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