Seven Spanish banks to merge

SPANISH savings bank Caja Madrid and rival Bancaja are in talks which could lead to the creation of the country’s largest savings bank and be the latest move in a sectoral restructuring the government is keen to see.

Caja Madrid and Bancaja said they were discussing joining the System for Institutional Protection (SIP) which Caja Madrid is already involved in with five other savings banks, making a total of seven.

Bancaja will contribute €110bn (£90.6bn ) in assets to the SIP which will create a new bank with assets close to €335bn.