(Corrects abbreviation to L-Bank, paragraph 2)
BRUSSELS May 16 An EU court ruled on Tuesday
that a bank owned by a German state should be subject to
supervision by the European Central Bank, rejecting a rare
challenge to the EU central bank's authority.
The Landeskreditbank Baden-Wuerttemberg-Foerderbank (L-Bank)
challenged the ECB's decision to classify it as a "significant
entity", meaning it should be subject to ECB supervision. The
ECB argument was based partly on the fact L-Bank's assets exceed
30 billion euros.
L-Bank had argued it should be considered a "less
significant" entity, meaning it could be supervised by national
(Reporting by Philip Blenkinsop; Editing by Alastair Macdonald)