LONDON/FRANKFURT, June 25 The European Central
Bank has pushed out a deadline in its landmark bank tests by a
week, but said the extension will not make any difference to the
overall timeline of the exercise.
Banking supervision is being centralised under the ECB as
part of a broader response to the global financial crisis and
the euro debt crisis.
Before the new watchdog - the Single Supervisory Mechanism
(SSM) - takes up its task in November, it is putting 128 of the
euro zone's largest banks through thorough health checks so
banks come to terms with hidden losses and strengthen their
In an unprecedented exercise, one part of the review
assesses whether banks have valued 3.72 trillion euros ($5
trillion) of risk-weighted assets correctly, which involves
about 135,000 credit files.
Two sources familiar with the review told Reuters that
valuations for the collateral underlying some banks' assets
would be submitted later this week, at least one week later than
A spokesman for the SSM confirmed the delay, but added that
the timeline for the overall exercise was still in place.
"An extension was granted of one week for some banks due to
the volume of collateral valuations required. Submission should
be complete this week," the spokesman said in response to
questions on the timing put forward by Reuters.
"The credit file review is well on track and national
competent authorities and banks are working extremely hard to
meet the deadlines," he added.
Some banks, including two international banks in Luxembourg
and one in Ireland, will be subjected to only very limited
review, two of the sources said.
This does not, however, indicate that such banks may not end
up under direct ECB supervision, because they may still meet all
qualifications, such total value of assets or size, one source
The Central Bank of Ireland and Central Bank of Luxembourg
both declined to comment.
The final list of banks that will come under direct ECB
watch will be published soon.
($1 = 0.7335 Euros)
(Reporting by Laura Noonan in London and Eva Taylor in
Frankfurt; Editing by Ruth Pitchford)