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CaixaBank buys Banco de Valencia for a euro
28/11/2012
BANCO de Valencia has been bought out by Caixabank for just one euro, according to the FROB.The Ordered Banking Restructure Fund has recently given the ailing Banco de Valencia a cash injection of 4,500 million euros, and its nationalisation means it will be one of four financial entities to get a slice of the 37,000-million-euro bailout from the EU.
Banco de Valencia registered losses of 389.4 million euros in the first nine months of 2012, after having cut its deficit by 55.5 per cent – from 876.44 million – thanks to the grant from the FROB.
The FROB has resurrected the auctioning off of Banco de Valencia – a former affiliate of Bancaja – along with Catalunya Banc, but the former was given priority due to its smaller size.
Resistance tests – devised by the management consultancy Oliver Wyman – found that in the event of adverse economic conditions, the entity would need up to 3,462 million euros in capital.
CaixaBank has worked out that it will be forced to carry out a restructure of the Banco de Valencia in the gross sum of 233 million euros, although it believes that from 2014 onwards, this will generate savings of 85 million a year in costs.
The sale is expected to be completed by the first quarter of 2013.
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The Ordered Banking Restructure Fund has recently given the ailing Banco de Valencia a cash injection of 4,500 million euros, and its nationalisation means it will be one of four financial entities to get a slice of the 37,000-million-euro bailout from the EU.
Banco de Valencia registered losses of 389.4 million euros in the first nine months of 2012, after having cut its deficit by 55.5 per cent – from 876.44 million – thanks to the grant from the FROB.
The FROB has resurrected the auctioning off of Banco de Valencia – a former affiliate of Bancaja – along with Catalunya Banc, but the former was given priority due to its smaller size.
Resistance tests – devised by the management consultancy Oliver Wyman – found that in the event of adverse economic conditions, the entity would need up to 3,462 million euros in capital.
CaixaBank has worked out that it will be forced to carry out a restructure of the Banco de Valencia in the gross sum of 233 million euros, although it believes that from 2014 onwards, this will generate savings of 85 million a year in costs.
The sale is expected to be completed by the first quarter of 2013.
Related Topics
You may also be interested in ...
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