An attempt to lift doubts about the industry’s ability to absorb losses revealed Spain’s banks have a capital deficit of 59.3 billion euros ($76.3 billion) less than previously estimated. The test was part of the deal to win a European bailout of as much as 100 billion euros. With mergers underway and tax deferred assets, the amount is closer to 53.7 billion euros. The stress test did not convince all analysts, however, because it used a capital ratio threshold of 6 percent—Ireland, for example, used an equivalent rate of 9 percent.

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