Trichet to meet banks at stress test summit - sources
FRANKFURT (Reuters) - European Central Bank President Jean-Claude Trichet will meet with Europe's top banks to discuss stress tests ahead of the publication of pan-European tests at the end of July, people familiar with the matter said.
The meeting in Frankfurt is set to take place on July 21, two days before Europe is expected to publish stress test results, one of the sources said on Monday. [ID:nLDE66302I]
"The date for a meeting with bank representatives has been set," said the source, who declined to be named.
The meeting will discuss results and consequences of the publication of stress tests, and assess if banks need to be recapitalised.
The European Central Bank declined to comment.
The tests will likely reveal capital needs for German and other European banks, several investment bankers said.
But this will likely reveal that banks need capital for "growth" or "balance sheet repair" rather than uncover surprises such as "emergency rescue efforts," one of the bankers, involved in advising banks on stress tests, said.
The methodology for the stress tests needs to be finalised this week if the July 23 deadline for publishing results is to be met, banking and regulatory sources said on Monday.
It remains unclear whether the methodology will be published before the stress tests are conducted.
Europe's banking watchdogs have pushed ahead with stress testing the banking system in an attempt to boost confidence in the sector which has been battered by uncertainty over its health.
According to financial sources, 16 German banks will undergo the new stress tests, including Deutsche Bank (DBKGn.DE), Commerzbank CBKGn.DE, Postbank (DPBGn.DE), Unicredit (CRDI.MI) unit HVB HYPO.UL, BayernLB BAYB.UL, HSH Nordbank HSH.UL, NordLB NDLG.UL, Helaba HLAG.UL, LBBW LBBW.UL, Landesban Berlin BEBG.DE as well as cooperative banks DZ Bank and WGZ Bank, NRW Bank and Deka-bank.
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