UPDATE 1-Bundesbank demands bank data on impact of low rates
* Bundesbank to assess impact of low interest rates on banks
* Savings banks, cooperative banks most affected
* Assessment part of broader supervisory routine (Adds comment from the Bundesbank, detail on savings banks)
FRANKFURT, Sept 27 (Reuters) - The Bundesbank has asked German banks to provide information on how the low interest-rate environment affects their profitability as part of its broader supervision.
The Bundesbank confirmed a report in German financial daily Boersen-Zeitung on Friday, saying it had sent out a request in September asking banks to supply data and forecasts by the end of the month on the impact of low interest rates and a potential sudden increase of rates on their profitability.
The banks were also asked to provide estimates for their maturity transformation.
The German Banking Industry Committee, which represents public-sector, cooperative and private-sector lenders, has asked for an extension of the deadline until the end of October.
The Bundesbank is looking into the matter and has not yet decided whether or not to extend the deadline. "We are in dialogue with the banks. We are still lacking some information in order to take a final decision," a spokeswoman said.
The Bundesbank does not plan to publish the results of the assessment.
In June, the Bank of England ordered an investigation into the vulnerability of Britain's financial institutions and borrowers to higher interest rates when central banks around the world start to wean their economies off massive stimulus.
The British central bank's Financial Policy Committee (FPC) concluded that a moderate rise in long-term interest rates did not pose an immediate threat to major banks and insurance companies and so far "had not led to dislocations in market functioning or significant impact on financial institutions."
In Germany, especially savings banks and cooperative banks, which hold hundreds of billions of euros in savings deposits, are affected by the European Central Bank's record low interest rates.
The savings banks, for example, recorded a 2.6 percent drop in interest profits last year to 23.2 billion euros. Georg Fahrenschon, head of the DSGV national savings bank association, expects another reduction of around 500 million euros this year. (Reporting by Eva Taylor and Andreas Kroener; editing by Christina Fincher)
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