Caruana warns savings banks over shareholdings

SPAIN - the Bank of Spain governor Jaime Caruana on Apr 18 warned the annual assembly of savings banks (CECA) that being stable shareholders in industrial companies, with influence on the management, could conflict with their status and objectives.

Caruana criticised this strategy since it represented a high concentration of risks and could require the savings banks to raise capital and reserves with hybrid instruments such as preferred securities (acciones preferentes).

For instance, savings b