Dexia, KBC have passed bank stress tests: paper
Belgian financial services group KBC and Franco-Belgian banking group Dexia have passed tests designed to assess their health in the event of a downturn, two Belgian newspapers said over the weekend.
Business dailies De Tijd and L'Echo, which are sister papers, said they understood from sources that the Belgian government would not be called upon again to bail out either group.
No one at either KBC or Dexia was immediately available for comment.
Europe is testing banks across 20 countries on how they would cope with another economic downturn and losses on Greek and some other government bonds.
The aim is to restore investor confidence by pinpointing any weak spots and forcing vulnerable banks to raise cash.
Some 91 banks being tested will publish results at 1600 GMT on July 23, and the London-based Committee of European Banking Supervisors (CEBS) will issue a statement summing up the outcome a minute later, sources told Reuters last week.
Simulated tests carried out by analysts have shown KBC, Dexia, National Bank of Greece , Commerzbank and Credit Agricole screen more poorly than big rivals, but without falling to danger levels.
KBC received 7 billion euros ($9.1 billion) of state aid during the financial crisis, and Dexia, a large lender to municipalities in France and Belgium, a 6.4 billion euro bailout by France, Belgium, Luxembourg and key shareholders in September 2008.
(Writing by Philip Blenkinsop; Editing by Steve Orlofsky)
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