BBVA Chairman: Merger With Bankia Would Be Very Difficult

A potential merger between Banco Bilbao Vizcaya Argentaria SA (BBVA) and Bankia SA (BKIA.MC) would be difficult to execute because of its size and potential systemic risks, BBVA Chairman Francisco Gonzalez said Thursday.

As Spanish authorities seek to overhaul the country's ailing savings banks, Bankia--the result of a merger between seven savings banks--has emerged as a target for consolidation.

A hypothetical merger between BBVA and Bankia "would create such a large player, that we'd probably create a problem," Gonzalez said at a press conference to present BBVA's full-year earnings.

"It's important that the restructuring creates stronger banks that are less systemic," Gonzalez added.

-By Christopher Bjork, Dow Jones Newswires; [phone]; [e-mail]