Over 100 more European banks stress tested
FRANKFURT/BERLIN (Reuters) - More than 100 banks in Europe -- 15 of them in Germany -- will be examined in a second round of stress tests to gauge how they can handle shocks to the financial system, sources close to the matter told Reuters.
The move comes as the European Union's executive and its central bank press member countries to test more of their banks than originally planned in an effort to reassure financial markets.
Only three German banks -- Deutsche Bank (DBKGn.DE), Commerzbank (CBKG.DE) and BayernLB BAYLB.UL -- were covered by the first wave of stress tests, whose results are set to emerge next month.
A second round of tests proposed by the European Central Bank and the CEBS banking regulator will cover lenders accounting for around half of the total banking assets in individual countries, the sources said.
The heads of Germany's central bank and financial market watchdog have called a meeting with the country's largest banks to discuss stress test results, the sources added.
They were confirming a report by the Financial Times Deutschland newspaper that said Bundesbank President Axel Weber and BaFin head Jochen Sanio will hold the meeting in Frankfurt on Wednesday.
The Bundesbank was preparing the groundwork for a possible new round of state support for banks which fail the tests, the paper reported. The Bundesbank declined to comment.
(Reporting by Arno Schuetze, Philipp Halstrick and Alexander Huebner in Frankfurt and Andreas Framke in Basel; editing by Toby Chopra and David Cowell)
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