The present financial crisis has severly hit the Spanish savings banks sector. Of 45 savings banks in 2007 by the end of 2012 the number had dropped to only 13. Most of the institutions that disappeared were consolidated into major groups, either by outright purchase by banks or as a result of merging operations among individual savings banks. The Bank of Spain and the 'Fondo para la Reestructuración Ordenada Bancaria' (FROB - Fund for the Orderly Restructering of the Banking Sector) have bailed out seven savings banks or groups of savings banks, and four of them have been nationalised. MOreover, nearly all merger operations have required public resoures, which in turn have increased the already large government budget deficit.
As indicated, the resolution of the overall financial system crises, savings banks included, has required massive financial support from the Spanish government, which in June 2012 was forced to request external assistance from the European Financial Stability Facility (EFSF).
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To cite this article:
MARTIN-ACENA (Pablo)(2013): The Savings Bank crisis in Spain: When and How?. ESBG Perspectives n°66, pp. 85-98.