LONDON: Some 25 eurozone banks have unsuccessful a health check by a European Central Bank, reports claimed Saturday, citing leaked documents.
Nearly one in 5 of a 130 banks surveyed unsuccessful a highlight test, a Wall Street Journal and a Daily Telegraph said, forward of a announcement of a central formula by a ECB on Sunday.
The rare health check of eurozone banks comes before a ECB assumes a purpose of a bloc’s banking administrator subsequent month.
The Frankfurt-based establishment takes on a new watchdog purpose on Nov 4. It hopes that a “comprehensive assessment” — done adult of a supposed item peculiarity reviews and a “stress test” — will expose any potentially nasty surprises beforehand.
Citing a breeze memo seen by Bloomberg, a Telegraph news pronounced usually 10 of a 25 banks that unsuccessful a highlight tests would be told to lift some-more cash.
The unwell banks were suspicion to be in Ireland, Italy, Greece and Austria and will have until Nov 10 to fill in collateral shortfalls, a paper reported.
The banks were already given a rough denote of their outcome on Thursday.
One of a unwell banks is being to be a Austrian lender Volksbanken AG, that a country’s Finance Minister Hans Joerg Schelling pronounced was no surprise, as it had already pronounced it would breeze itself down.
An ECB orator pronounced a formula had not nonetheless been finalised and discharged reports in a meantime as “speculation”.
“The formula will not be final until they are deliberate by a Governing Council of a bank on Sunday, after that they will be published. Until that time, any media reports on a outcome of a tests are by their inlet rarely speculative,” he said.