Stress test results set to be disclosed July 23

German banks are on track to pass the European stress test, several people close to the banks said, citing preliminary results, and would be therefore unlikely to need immediate recapitalisation.

The results, which were due for submission by the end of Monday and need to be verified independently by the national regulator, show none of the German banks fell below the Tier 1 capital ratio of 6 percent, the sources said on Tuesday.

Among the fourteen banks tested were private sector lenders Commerzbank, Deutsche Bank and Deutsche Postbank, as well as the state-controlled Landesbanken.

Among the Landesbanken, those lenders which did not receive state bailout money during the crisis, such as Nord LB and Helaba, have Tier 1 capital levels of between 8 percent and 9 percent.

Rivals which did receive a bailout during the crisis, such as HSH Nordbank, Landesbank Baden Wuerttemberg and Bayern LB, have Tier 1 capital levels of around 10 percent or higher, according to their financial reports.

Nationalised lender Deutsche Pfandbriefbank, the predecessor of Hypo Real Estate, cooperative banks WGZ and DZ, as well as Deka Bank, the fund management arm of the savings banks and Landesbanken were also subjected to the test.

Stress test results are expected to be disclosed on July 23, 2010.

The banks all declined to comment. Bafin and the Bundesbank declined to comment. Commerzbank referred to comments made by Chief Financial Officer Eric Strutz to Reuters.