Spain Bank Stress Tests Show Capital Deficit of $76 Billion

Spain’s banks have a capital deficit of 59.3 billion euros ($76.3 billion), less than previously estimated, according to a test designed to lift doubts about the financial industry’s ability to absorb losses.

The Bankia group, a nationalized lender, had a 24.7 billion-euro deficit and Banco Popular Espanol SA had a 3.22 billion-euro shortfall in stress tests conducted by management consultants Oliver Wyman and released yesterday. The tests of 14 lenders showed no deficit for seven including Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA and Banco Sabadell SA, the Bank of Spain and Economy Ministry said in a statement.