Four Spanish savings Banks announced plans to merge, in the latest attempt to restructure the country's financial sector.

At a news conference, executives said talks for the deal, which they call a joint venture, began as a response to Spanish banking giant Banco Santander sa's move into Brazil last year.

A week ago, Spain's central bank was obliged to take control of a troubled regional savings bank, CajaSur, after a merger with a competitor fell apart.