DUBLIN/FRANKFURT May 22 European Central Bank
officials agreed on Thursday that Franco-Belgian bank Dexia
would not have to prove it could withstand another financial
crisis in a European Union-wide stress test, reducing the
chances of it needing further state aid, sources familiar with
the talks said.
Dexia, which will come under the ECB's direct supervision in
November, was originally on the list to take part in a stress
test being carried out on 124 EU-banks to prove they have enough
capital to withstand another crisis.
But the ECB's supervisory board agreed at a meeting in
Frankfurt to recommend to the central bank's governing council
that Dexia must only prove it has enough capital to withstand
the most likely economic scenario, and not the crisis scenario
other banks must prove they can weather.
The ECB, Dexia and its existing supervisor the National Bank
of Belgium all declined to comment.
(Additional reporting by Phil Blenkinsop and Huw Jones; Editing
by Alexander Smith and Jane Merriman)