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UPDATE 1-German banks get extra time for stress test data

Published 04/13/2011, 12:08 PM
Updated 04/13/2011, 12:12 PM
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* Banks get six more days to supply required data -Buba

* Banks just received some test templates on Tuesday

(Adds Buba, EBA comment, Fitch comment, background)

MUNICH, April 13 (Reuters) - Germany's banks will get an extension until Tuesday to supply financial data for a pan-European stress test, the Bundesbank said on Wednesday.

Bank sector managers had complained that the European Banking Authority (EBA) had only sent out templates needed for the tests on Tuesday.

The 13 German banks taking part in the test were originally due to turn in their completed templates on Wednesday.

The extension means the Bundesbank and financial markets watchdog BaFin will have less time to evaluate the banks' data before passing them to the EBA as scheduled on April 29.

Bank managers said they feared a repeat of last year's stress test exercise, when regulators repeatedly revised the questionnaires sent to banks.

"It's the same chaos as last time," said one banker, who asked not to be identified.

The EBA on Wednesday declined to discuss any specific EU state. "We will stick to our timeline that we have clearly set out," an EBA spokeswoman said.

Official results of the EU-wide test of 90 banks are due for publication by the end of June.

However, banks should have a clear idea whether they have passed the test by the time they submit data for review to their national supervisors next week.

The EBA test requires banks to prove that they hold more than 5 percent of core Tier 1 capital to pass the exam, which assumes a hypothetical two-year recession, a collapse of property prices and rising unemployment.

Germany's major stock-market listed lenders, Deutsche Bank and Commerzbank, are expected to pass.

But there are doubts over whether state-backed landesbanks NordLB and Helaba will pass, because of their reliance on a form of hybrid capital that regulators fear may not be available when needed to absorb potential losses.

Credit rating agency Fitch on Wednesday said its ratings on the landesbanks would not be affected by the tests because its own definition of core bank capital also excludes the hybrid instruments.

(Reporting by Angelika Gruber, Alexander Huebner, Huw Jones, and Christian Kraemer; writing by Ludwig Burger and Jonathan Gould. Editing by Jane Merriman)

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