Regional Spanish co-op banks in tie-up talks

* Cajamar says "integration" not a "merger."

* Talking with other banks in joining group

MADRID, April 16 (Reuters) - Spanish bank cooperatives Cajamar and CajaCampo are in advanced talks to pool resources, but will stop short of a full merger, Cajamar said on Thursday, in a further sign of the pressure regionally-based lenders are under.

"With this initiative, we foresee a high level of economic, financial and asset integration that will ... strengthen the two institutions' competitive position," said Cajamar, which is based in the southern region of Andalusia.

Spain's savings banks or "cajas" are groaning under the pressure of limited access to money markets and the weight of bad loans after lending heavily to the country's now-moribund property sector.

A spokesman for the Andalusian lender, whose full name is Cajamar Caja Rural, said that talks were at an advanced stage but he did not expect an agreement to be struck for another four to five weeks.

"It's not a merger, it is the formation of a common group in which we integrate two cajas and to which other cajas who want to could join in the future," a CajaMar spokesman said.

"There are conversations with other cajas."

In contrast to Spain's 45 savings banks or "cajas de ahorros" which are controlled by regional governments and semi-public, "cajas rurales" are private credit cooperatives with member shareholders, though like savings cajas they have to distribute part of their profits to good causes.