According to a study by a Swiss rating agency, Independent Credit View, the global banking system is particularly undercapitalized, to the tune of $1.5 trillion dollars. 58 banks where compared for Q4 2009 capital on hand to needs in Q4 2011 and Bloomberg got their hands on it. Look at these two percentages of Irish banks:

Dublin-based Allied Irish and Bank of Ireland may need to raise capital equal to 681 percent and 536 percent of their current market values

It's not just Ireland.

Commerzbank of Frankfurt may see a capital deficit equal to 611 percent of its market value, while for Edinburgh-based RBS that ratio may be 359 percent, according to the study.

Meanwhile Spain is unraveling with 4 more Spanish banks merging today:

Four regional savings banks in Spain said Monday that they had reached a preliminary agreement to merge some operations. The agreement, which is being led by Caja de Ahorros de Mediterráneo and includes Cajastur, Caja de Extremadura and Caja Cantabria, aims to create a joint banking group to “strengthen solvency and assets of the participating banks,” the banks said in a statement.