FRANKFURT Aug 28 German state-backed landesbank
lender LBBW is strongly capitalised and ready for
European regulators' stress tests of the banking sector, its
chief executive said on Thursday.
Stuttgart-based LBBW, the country's largest regional
landesbank, is undergoing a review of its asset quality and
stress tests conducted by the European Central Bank and the
European Banking Authority, the results of which are due in
"We are well prepared for the upcoming stress tests," Chief
Executive Hans-Joerg Vetter said in a statement.
The financial health checks are aimed at giving regulators
clear insight into the state of the banking sector before the
ECB takes over responsibility for banking supervision in the
euro area in November.
LBBW reported its core capital ratio - a measure of the
lender's ability to withstand shocks - rose to 14.4 percent at
the end of June from 13.1 percent at the end of December, well
above an ECB benchmark of 8 percent.
"This gives LBBW a firm capital position," Vetter said.
(Reporting by Jonathan Gould; Editing by Maria Sheahan)