Three Spanish savings banks agree merger as debt crisis bites

http://www.bbc.co.uk/news/business-18246886

Ibercaja, Liberbank and Caja3 - have approved a merger to strengthen their weakened balance sheets.

The merged bank would create the country's seventh biggest lender, with 120bn euros (£96bn; $151bn) in assets.

Spain's government has asked its banks to set aside nearly 84bn euros to cover bad debts.

The merger comes after Bankia, itself made from a merger of banks, needed another bailout.

Spain has been blighted by the highest unemployment rate in Europe.