The Deposit Guarantee Fund (DFG) in Spain has spent more than €1.8 billion ($2.4 billion) compensating small investors who lost out when two of the nation's largest banks were bailed out, according to the Bank of Spain.
Reuters reports the fund, which was set up to protect depositors of more than €100,000 or less, is backed by some of Spain's healthiest institutions and will take minority stakes in the two lenders as a result.
NCG Banco and Catalunya Banc were not publicly listed when the rescue plan came into effect and so the government is using the DGF to buy out their shares instead.
The €41 billion bail-out of Spain's banks in 2012 was done using European money and customers at the rescued institutions who had investments in risky products, had to convert these into shares.
Other institutions that did not need rescuing were forced to come up with the additional €2 billion in contributions to pay for the DFG initiative.
By Claire Archer