There will be no bail out for Banco Madrid from Spain’s bank restructuring fund. The state-funded vehicle, which rescued several Spanish banks during the 2012 crisis said the Madrid lender’s problems did not pose a systemic risk which warranted the use of public funds.
Banco Madrid began bankruptcy proceedings at the start of the week. The move came after customers rushed to empty accounts in the wake of allegations by the US Treasury that the lender’s parent, Banca Privada Andorra, laundered money for international criminal gangs.
Banco Madrid has confirmed it will guarantee deposits of up to 100,000 euros per client.