Two more regional banking institutions from Spain had decided to merge as the pace of consolidation in the segment gathers pace because of the recession period, which disturbed the whole market.

The two regional Spanish saving banks Unicaja and Cajasur are based in the southwestern area of Andalusia. Both the banks entered into the deal on Monday.

Unicaja and another savings bank Caja de Jaen, decided in Aug to unite and by joining force the 3 banking institutions will result in a powerful regional financial institution.

During the last week, 2 savings banks Caixa Penedes and Caixa Laietana declared that they had decided to join up forces.

Spanish banks got off relatively lightly from the sub-prime mortgage crisis in 2008, as nation’s firm rules meant that they did not make large investments in the high-risk loans that troubles financial lenders.

But many, particularly smaller unlisted saving banking institutions normally controlled by regional political leaders, were severely hit by the break down of the country's once-booming realty market, both through loans to developers and mortgages.

Bank of Spain governor Miguel Fernandez Ordonez has told reporters that he would like to see a third of the country’s 45 savings banks quickly absorbed by stronger institutions

While talking to reporters, he said, “The radical reform in a bid to help the sector which is struggling in the midst of the nation's worst recession in decades.”

Further, he said, “I think there are at least 15 institutions that should merge with others. I hope (by) next spring we have restructured all these institutions, that's my idea. We now have many, many mergers that we are discussing.”