Spanish banking system restructuring after the crisis and the solvency in financial institutions. Consequences for savings banks

The financial crisis that has affected the entire world has had a special impact in Spain. Savings banks that are over a hundred years building its financial management, have disappeared, at least as it had been developing its activity. This fall has been driven by the policies laid clown by the Bank of Spain, the Ministry of Economy and the Fondo de Reesmicturacion Ordenada Bancaria (FROB) to save the Spanish financial system. The aim of these bodies, as their recommendations and the standards issued, was that the savings banks to become banks and all financial institutions increase in size, so it should lay the groundwork for increased solvency and this way out of the financial crisis. In this paper we analyze the determinants of solvency of Spanish banks in the period 2006-2009 and included including the size and type of entity to check if the objectives of the Bank of Spain are correct in this respect. The results show the main determinants of solvency and among themselves that are the size and type of institution. So the roadmap laid down by the Bank of Spain and the Ministry of Economy in the current restructuring, apparently yes that is correct. (C) 2012 ASEPUC. Published by Elsevier Espana, S.L. All rights reserved.