Banking concept  
The first thing you need to know about Spanish banks is that they are over 170 banking institutions entities where you can lodge your savings or open a current account. The banks can be classified in two main categories, the bancos and the cajas. At the moment there are about 50 bancos and about 120 cajas.

Banking history in Spain
To further understand the differences between the two types of banking institutions, you will have to trace the origins of banking history in Spain.

During the 17th century, the church acted as banks. People were able to borrow money from the churches by giving them some form of deposit. When the money was repaid, people got their deposits back. If a certain agreed time elapsed and the borrower was not able to return the money, the church became the owner of the object. The concept evolved to become the new ‘Cajas de ahorros’.

At the same time, wealthy families created private institutions that loaned money readily as long as interest was repaid with the loan.

These forms of lending have evolved into the two different kinds of banks in modern Spain.

The cajas are state-owned banks while bancos are privately-funded institutions and co-owned by shareholders with several people forming the board of directors.

Till today, the cajas still adopt a 'part of the town or village' mentality and supports residents by investing in local social, educational, scientific and cultural projects. Most cajas bear the name of Spanish regions while bancos are named after the founders of the banks or where they lived.

Unlike some countries, the Bank of Spain (Banco de España) serves as the central reserve and is a financial regulator.

Choosing the most appropriate bank for you

Whether it is Caja Canarias, Banco Urquijo, Bankoa, Caixa Laietana, Caja de Jaén or any other banks, you should consider many factors before deciding when bank you want to open an account with.

Depending on your needs, a smaller size bank that is more locally known might be more suitable than one of the large institutions. The former usually offers a preferential treatment to the most loyal customers, while the larger institutions won't differentiate from one customer to the other.

Another advantage of smaller size banks is that you see more of their branches or ATMs in regions where they are based.

You may also want to consider opening an account with one of the many foreign banks that has arrived in recent years. These banks will operate both in Spain and other countries.

Main Spanish banks  
The top four bancos according to their gross margins and the top two cajas in the previous fiscal year are listed below:
Banco Santander Central Hispano - Grupo Santander
BBVA
Banesto
Banco popular

Caixa Catalunya
Caja Madrid

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