Germany's KfW wants its export bank removed from ECB oversight

FRANKFURT Wed Feb 12, 2014 1:06pm EST

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FRANKFURT Feb 12 (Reuters) - Germany's KfW wants to remove its IPEX-Bank from the list of institutions that will be supervised by the European Central Bank, arguing that as the export bank is a division of a state-owned group its oversight falls under the national regulator.

From November, the ECB will supervise directly around 130 of the bloc's top lenders as part of a broader drive for a European banking union that aims to make banks more resilient to future crises.

KfW chief executive Ulrich Schroeder said Germany's third-biggest bank by balance sheet size was in talks with supervisors over the issue.

The KfW group is considered under German and European law to be a state institution and as such is supervised by Germany's Bafin.

Schroeder said putting its IPEX-Bank subsidiary under separate supervision made no sense.

IPEX-Bank is one of the 24 German banks participating in the balance sheet examinations and stress tests led by European authorities before the ECB assumes its new role.

A spokeswoman for the ECB declined to comment on any particular bank. The ECB will decide on the final list of European banks it will supervise later in the year, she said. (Reporting by Alexander Huebner; Editing by Louise Heavens)

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