Shareholders in Spain's CaixaBank approve Bankia merger

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The CaixaBank-Bankia deal still needs the approval of regulators. The two banks' tie-up would bring the total number of banks in Spain down to 11 from 70 a decade ago.

The move comes two days after, Spain's 4th largest bank, approved the proposed tie-up with CaixaBank, its 3rd largest lender.

Both banks said they merger was needed to be better positioned to deal with the challenges facing the banking sector such as low interest rates and growing competition from financial technology startups. The COVID-19 pandemic has accentuated the situation due to the worsening economic situation, he added.

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