BANKS DO NOT often give a hearty welcome to
government legislation aimed at regulating the financial
services sector. Spain's new finance law, which is expected to
be approved by parliament after the summer recess, is an
exception. It has been enthusiastically embraced by the 46
cajas de ahorros - the savings banks that account for half the
country's banking system. As far as the cajas are concerned,
the law hands them their cake with a clear mandate to eat it
as well.
The cajas have been operating since the mid-19th century and for
most of that time were viewed as stodgy, almost clerical
institutions that were not taken seriously by the commercial banks.
That is, not until 1977 when the government introduced legislation
that allowed these private foundations to offer their predominantly
working-class customers the same products and services as the
banks.
Quality services
"The common perception that the cajas, being quasi-public
institutions,...
