Central Bank of Spain announced Monday that took over Banco de Valencia, a small credit institution, but the first nationalized commercial bank in crisis after authorities had yet to take control of three houses economy.
A fund financed by the central bank will make a capital injection of one billion euros from Banco de Valencia and will be given a credit of two billion euros.

The central bank said it would then try to sell the credit institution.
In late June, Banco de Valencia had a capital adequacy ratio 7.36%, while loans accounted for 6.99% neperormante of the loan portfolio.

Since the financial crisis, the central bank took control of three savings banks, namely CCM, Cajasur and Caja de Ahorros del Mediterraneo.

Like other Spanish banks, Banco de Valencia asset quality was strongly affected by exposure to real estate crisis in Spain.

Bank shares were down 3.3% Monday, when suspended from trading shortly before the Bank of Spain to announce the takeover.

In late June, the bank had assets of 24 billion euros. In the first six months, Banco de Valencia profit decreased by 64% to almost 17 ​​million euros, the bank's financial report.