Bank of Spain approves recapitalisation plans of thirteen savings banks

PALMA
SPAIN'S central bank has approved recapitalisation plans of thirteen “caja” savings banks in an ongoing effort to shore up solvency levels.
In a release, the Bank of Spain said nine of the plans could require state aid from the country's Fund for Orderly Bank Restructuring, known as FROB. It said four unlisted savings banks will try to sell shares to private investors through initial public offerings or large stake sales.

Under pressure to shore up international confidence in the health of the country's banks, the Spanish government set new minimum capital requirements in February. It said the FROB would take equity stakes in those institutions that weren't able to raise new money from private sources.