The Bank of Spain has taken control of the CajaSur bank after the failure of merger negotiations with Unicaja, the move being made to ensure that CajaSur can continue to operate normally and fulfill all its obligations to third parties.
The Bank of Spain has ordered the replacement of the management of CajaSur and has appointed FROB (Fondo de Reestructuración Ordenada Bancaria) as the administrators.
The Junta de Andalucia regrets the breakdown of merger talks between the two banks as it saw such a move as the best way forward in order to solve the financial problems of CajaSur. However, although the directors of Unicaja approved the merger, the board of directors of CajaSur didn’t, and now the Bank of Spain has intervened to prevent financial instability.