Another 6 banks are set to merge in Spain in an effort to shore up their balance sheet, according to Expansion.
The merger would create a SIP, or institutional protection scheme (Spanish translation), for 6 regional banks including Caja Madrid, Caja Avila, Caja Segovia, Caja Laietana, Caja Rioja, and Caja Insular de Canarias (Canary Islands).
These SIPs are not full mergers, as the individual cajas will remain distinct. Instead, they are a risk pooling measure to provide greater security to over leveraged banks caught up in Spain’s real estate boom.
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