Regling: euro-zone banks in good shape before stress test: newspaper -
The head of the euro zone's bailout funds, Klaus Regling, said that he believes banks in Spain, Portugal, Cyprus, Greece and Ireland are in good shape and that there will not be any surprises in European Central Bank stress tests due later in 2014. In an interview to appear in Monday's Sueddeutsche Zeitung newspaper, the head of the European Stability Mechanism (ESM) said the five countries were benefiting from rising exports and economic growth was returning. "I expect that there won't be any big surprises in Spain, Portugal and Cyprus. The same is the case for Greece and Ireland." The ECB's asset quality review, an assessment of the balance sheets of more than 120 banks due to be completed next autumn, should bring transparency on the quality of banks' loans and other assets.