Major Spanish banks said on Friday a split between Catalonia and Spain would be a serious threat to financial stability in the northeastern region, where a looming election is being framed by local leaders as a vote on independence. Spain's two main banking lobby groups AEB and CECA, whose members include Santander, BBVA and Barcelona-based Caixabank, warned secession could force lenders to consider leaving the region. Banks and businesses in Spain, especially those with deep roots in Catalonia, had until now been reluctant to wade into the stand-off between the region and the government in Madrid and take sides.
Political parties campaigning for Catalonia to break away from Spain - including that of current regional premier Artur Mas - have pledged to deliver independence within 18 months if they won a majority on September 27 in the local parliament.