Three more Spanish banks announce alliance
Three more Spanish savings banks announced plans yesterday to form an alliance to weather the country's uncertain economic outlook sparked by the collapse of a property boom.
The three -- the Monte de Piedad y Caja General de Ahorros de Badajoz, the Caja de Ahorros y Monte de Piedad del Circulo Catolico de Obreros de Burgos and the Caja de Ahorros de la Inmaculada de Aragon -- are to join forces under a so-called "cold fusion" or "virtual" merger.
Under the set-up, the banks will keep their own brands, balance sheets and employees but a single management will monitor solvency and liquidity centrally.
It is the latest in a series of mergers and cooperation agreements promoted by Spain's central bank to restructure the country's financial sector.
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