New savings bank legislation in Spain

Today government expected to approve reform to laws governing savings banks

The Spanish parliament is expected to approve reforms to the laws governing building societies in Spain. At present all building societies in Spain are regional entities belonging to the state. However with the reforms announced yesterday by the Spanish President, José Luis Rodríguez Zapatero, all building societies will be able to issue up to 50% of shares to be sold to private interests with the rights to take part in governing bodies. Until now all directors of Spanish building societies have been regional politicians.

Today a cabinet meeting attended by all cabinet members is scheduled to be held in which a decree on valuing each building society together with how to deal with the risk of oversubscription will be authorized.