Tuesday, May 29, 2012
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.