Consolidación: Now 6 More Spanish Banks Are Set To Merge

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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).

This is the third such merger of Spanish regional banks, or cajas, in recent days and the fourth action to backstop the country’s banking system.

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.

Now check out why this is just the beginning of the Spanish debt crisis >

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