The boards of Spain’s CaixaBank and state-owned Bankia have approved a merger plan between the two loan specialists, which will make the biggest bank in the nation by market share in retail operations.

The deal terms will see CaixaBank offer 0.6845 of its shares for each Bankia share, as indicated by a release published Friday. The recently made bank, which will keep the CaixaBank brand, will have resources of in excess of 664 billion euros ($786.7 billion), the organizations said.

The merger plan actually should be approved at the General Shareholders’ Meetings of the two organizations and by the competition specialists. The banks said they anticipate that this process should be closed during the first quarter of 2021.

“With this operation, we will become the leading Spanish bank at a time when it is more necessary than ever to create entities with a significant size, thus contributing to supporting the needs of families and companies, and to reinforcing the strength of the financial system,” Bankia Executive Chairman Jose Ignacio Goirigolzarri said in a statement.

Goirigolzarri will be the executive chairman of the new organization, and current CaixaBank CEO Gonzalo Gortázar will be the CEO.

European lenders have been under significant pressure in the wake of the global financial emergency and the resulting ultra-loose monetary policy. Likewise, the stun made by the Covid pandemic not long ago has exacerbated their issues and solidification could be a solution for cut expenses and make the business more productive.

“CaixaBank’s and Bankia’s solid equity position will provide the capacity to absorb restructuring costs and valuation adjustments, with the combined entity achieving a CET1 ratio of 11.6%,” the banks said in a statement.

The intently viewed CET1 ratio is a measure of capital quality, presented following the global financial emergency.