Spain's Banks Have $76 Bln Shortfall

Stress test shows biggest capital deficit at Bankia.

Spain’s banks have a combined capital shortfall of 59.3 billion euros ($76.3 billion), according to a stress test designed to remove doubts about a financial industry pummeled by real estate losses.

The Bankia group, a nationalized lender, had a 24.7 billion-euro capital deficit in the tests conducted by management consultants Oliver Wyman that also showed Banco Popular Espanol SA had a 3.22 billion-euro shortfall. The stress tests of 14 lenders showed no capital deficit for seven banks, including Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA and Banco Sabadell SA.

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