Bank of Spain warns Catalonia's independence could cause "corralito"

The Bank of Spain governor Luis Maria Linde warned on Monday that if the Spanish eastern region of Catalonia split from Spain, there could be a risk of "corralito", a measure taken to stop a bank run.

Linde made this statement at the news agency Europa Press breakfast meeting with the media on Monday where he explained that in certain contexts of serious tensions, the clients' accounts could be frozen in order to avoid a potential bank run.

However, Linde specified that this situation was "a highly unlikely prospect."

Linde explained that Catalonia would not have access to the European Central Bank (ECB) funding if the region were to split from Spain, adding that the region would be out the European Union and the euro currency.

These statements followed on the statements by two major Spanish banking groups AEB and CECA that said on Friday that the independence of Catalonia could pose a threat to financial stability in the region.

Regional elections will be held on Sept. 27 in Catalonia, where pro-independence political parties called for a vote on independence. Endit