BKK wins bid to take over Cajasur

The Spanish savings bank, Bilbao Bizkaia Kutax (BBK) won the auction to take over the Spanish government owned Cajasur. BKK will be backed by the Fund for Orderly Bank Restructuring (FROB), which will assume losses made from Cajasur's riskier assets up to EUR392mn. The FROB was set up last year to help consolidate Spain's banking system. BMI believes that the Spanish banking system is facing tough challenges in the coming years and a more consolidated banking system will help the sector survive the recession.

To read the full article, please choose one of the following options: