"We're back to square one," said a chief economist with a major Spanish bank, who declined to be identified.

The Spanish central bank cut its main lending rate a quarter point to 7.50 percent Friday.

Spanish banks and utility companies are getting beaten up right now, which may throw off some buying opportunities.

Spanish banks are also suffering from a novel dose of competition.

In the early 1980's, it was among the smallest of the major Spanish banks.

Already, the industry ministry and the Spanish national bank have warned against overexposure.

I don't understand those people who are questioning the strength, competitiveness and prestige of Spanish banks.

Representatives of the Spanish banks declined to comment on the criticism.

Financial penetration is even greater, with Spanish banks already said to control 40 percent of bank assets.

Control of Spanish banks and utilities still tends to be concentrated, he said, but the changes are a step in the right direction.