It used to be said that Spain’s savings banks, known as cajas de ahorros, posed a threat to the dominant position held by the big commercial banks. That threat is now a reality, at least in the domestic market. As of this year, the country’s 46 cajas now account for 54% of the mortgage market, the banking industry’s key driver of growth, and 56% of total customer deposits.
Even more alarming for the banks, the cajas have started to grab market share in areas that were once the private fiefdom of their giant rivals Grupo Santander and BBVA. The cajas have parted company with the image of the savings bank as a sleepy, conservative institution. Caja Madrid, the second largest after Barcelona-based La Caixa, now ranks first in project finance and credit derivatives and second in loan syndication.
