Only 12 months ago, most London-based bankers, lawyers and accountants had never heard of the – then – 45 Spanish savings banks, known as cajas. Now, the group is down to 17 and still shrinking thanks to several fast-paced mergers. Many are looking to raise capital and the cajas are increasingly dominating many bankers’ lives.

The Spanish government is overhauling the sector to bring order to the country's troubled financial system. Prime minister José Luis Rodríguez Zapatero wants to avoid again falling prey to the so-called "bond vigilantes" - investors who less than a year ago bet Spain would follow Greece and Ireland into a European Union bail-out.