German banks agree to EU-wide stress tests -Buba

FRANKFURT, June 30 Wed Jun 30, 2010 7:36am EDT

FRANKFURT, June 30 (Reuters) - Germany's banks have agreed to participate in EU-wide stress tests once the detailed parameters have been set, the Bundesbank and financial watchdog Bafin said on Wednesday.

"The representatives of Germany's banking sector expressed their readiness in principle to participate in the stress tests on the basis of consistent European parameters," the Bundesbank said in a statement issued following a meeting between the central bank and the heads of the country's biggest banks.

Those parameters would soon be presented, it added.

Reuters reported on Tuesday that three German lenders, including the country's biggest, Deutsche Bank (DBKGn.DE), as well as Commerzbank (CBKG.DE) and landesbank BayernLB [BAYLB.UL], had passed a previous test on how well they could handle economic turmoil or shocks to the financial system. [ID:nLDE65S18K]

A further round of tests proposed by the European Central Bank and the European banking regulator CEBS will examine more than 100 other banks in Europe, 15 of them in Germany, sources close to the matter told Reuters on Monday. [ID:nLDE65R1Z9]

(Reporting by Jonathan Gould)

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