Shares in Spanish banks fell on Monday following the government bail-out of one lender over the weekend.
Shares in Santander were down 1.25%, while lenders BBVA and Banco Popular were also down 2% and 1.3% respectively.
On Saturday Spanish bank Cajasur - one of Spain's largest regional lenders - was taken over by Spanish authorities after running into trouble.
The bank was heavily exposed to the collapse in Spain´s property market.
The Bank of Spain has taken over the running of Cajasur, giving it access to 550m euros (£474m; $686m) of emergency funding.
The action was taken after a planned merger between Cajasur and savings bank Unicaja fell though at the end of last week.
The move also affected the currency markets, with the euro down against both the pound and the euro.
The single currency was down 0.6 cents against the dollar at $1.2512, and was down 0.8 cents against the pound, with a pound buying 1.16040 euros.
Cajasur becomes the latest victim of Spain's property market collapse, which has left banks saddled with debts worth 445bn euros, according to Goldman Sachs.
Analysts said the bail-out would raise fresh concerns among investors about the stability of the Spanish banking sector, and the ability of the Spanish government to repay its debts.
Last week Spain approved plans for a 15bn euro package of austerity measures designed to reduce its debts.
via BBC News - Cajasur bail-out hits Spanish bank shares.
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