• Have to guarantee confidence in banking sector
• aims to allow cajas to operate normally in financial markets
• aims to preserve cajas social work
• Irish crisis prompted doubts about Spanish banks
• Sets core capital requirement of 8% for all banks, brings forward to fall 2011 from 2013

• Government will provide capital for banks which don’t reach core capital requirements
• Core capital requirements higher for non-stock exchange listed banks
• Banks will have until fall to boost capital
• Goal is to raise fresh capital from the market
• Capital needs of sector won’t exceed EUR 20 bln
• Plan will not affect deficit cutting objective