Spanish financial institutions, which have with one exception ridden out the global economic storm intact, are bracing for a difficult summer and will soon be offered aid from a multi-billion euro rescue fund hurriedly being assembled by the government.

With every passing week, more Spanish ministers, bankers and analysts accept that the weakest of the country’s 45 cajas, the unlisted regional savings banks, will need to be merged or recapitalised or both in the face of an intolerable burden of bad loans arising from the collapse of Spain’s housing market.