* Bundesbank president wants new bank stress tests
* Stress tests to include more banks, scenarios
* Governments should provide backstop before disclosure
* Banks still divided on issue
(Adds German banking association)
FRANKFURT, June 17 (Reuters) - A new set of European bank stress tests is needed to include a broader swath of the banking industry as well as new stress scenarios such as the sovereign debt crisis, Bundesbank head Axel Weber said on Thursday.
Speaking at a conference in Frankfurt, Germany, Weber -- also a member of the European Central Bank's governing council -- said he has pushed for disclosure of the stress test results "by bank and by country" on an international level.
Germany had been sceptical about revealing details of tests on the financial health and risk exposure of its banks, but has dropped its objections after France and Spain came out in favour of a move the Obama administration has pressed Europe to take.
Weber said there would need to be conditions fulfilled before the results of any tests were published.
"(...) All countries that are impacted (should) enter a clear political commitment, that if a recapitalisation became necessary during the course of this stress test ... they would provide a backstop," he said.
Banks remain undecided on whether disclosure makes sense.
In Germany the Association of German Banks, which represents
large private sector lenders such as Deutsche Bank
The German association of public sector banks, which represents the troubled Landesbanken sector, remains opposed to such a disclosure.
Weber's fellow Governing Council members Erkki Liikanen and Christian Noyer said making stress test results public would boost confidence. [ID:nLDE65G0WH] [ID:nWEA6552]
Weber said countries should not implement their own banking regulations, but coordinate them internationally. There was a risk of them being politicised, which could hamper harmonising the future regulations.
Weber also warned against creating a permanent, pre-financed mechanism to help out countries in fiscal trouble.
"What has to be avoided in any case is the introduction of permanent support mechanisms," Weber said. (Reporting by Edward Taylor, editing by Patrick Graham; +49 69 7565 1187; edward.taylor@thomsonreuters.com; edward.taylor.thomsonreuters.com@reuters.net)