Op-ed: Banca Cívica and its merger pains

Banca Cívica is painfully stomaching another merger. Kutxabank now looks like the ideal candidate to absorb Banca Cívica, because it is in better condition financially and would add, on the one hand, Burgos and Navarra to their network in País Vasco and, on the other hand, would strengthen their presence in Andalucia by uniting acquired firms Cajasur and Cajasol.

This is the first movement after becoming familiar with the government's new policy for provisions and mergers. But it was realized, above all, because the Banca Cívica's merger with Cajasol has not worked out.

The Bank of Spain has given their attention to Banca Cívica's presidents, Goñi and Pulido, for not moving ahead with the merger. The pair is worrying more about their egos than the bank's efficiency, which is one of the lowest in the sector. Now, deservedly, they will be cut out of the newly-formed institution.