Commerzbank set to clear ECB stress-test hurdle: sources

Mon Oct 13, 2014 9:56am EDT
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By Jonathan Gould and Alexander Hübner

FRANKFURT (Reuters) - Preliminary discussions with the European Central Bank have given Germany's Commerzbank (CBKG.DE: Quote) no reason to believe its capital will fall below stress test requirements, two sources familiar with the talks told Reuters.

The ECB is carrying out "supervisory dialogues" with the 130 banks undergoing a landmark test to give them early warning of how they fared so that they may plan any capital raising needed. The ECB has stressed that the information is "partial and preliminary".

Some analysts have pointed to Commerzbank as one of the few banks that may fall short of the ECB's stringent capital requirements.

Sources familiar with the Commerzbank talks, which took place last week, said the ECB had not given any preliminary signal that would indicate that the bank would fall short of the minimum requirements.

"After the supervisory dialogue (with the ECB) there are no indications that the bank may have failed," said one source, on condition of anonymity because the deliberations are private. A second source confirmed the dialogue result.

Shares in Commerzbank bolted higher on the news, trading up over 3 percent at 1224 GMT (0824 EDT) to position itself among the day's top gainers in European banks .

The review, however, is not completed. The ECB is testing how the banks value assets and assessing whether their capital is strong enough to allow them to weather future crises. The results will be published on Oct. 26.

An ECB spokeswoman said it would be premature to draw conclusions of any nature about the test results. She declined to comment on Commerzbank.   Continued...

The headquarters of the Commerzbank AG is pictured before the bank's annual news conference in Frankfurt February 13, 2014. REUTERS/Ralph Orlowski