FRANKFURT, Feb 3 (Reuters) - Germany's lenders are well prepared for the European Central Bank (ECB) health checks in the coming months, the country's top banking supervisor was quoted as saying on Monday.
The ECB is expected to release further details on Monday of how it will assess euro zone banks before stress tests of the sector later this year, but Raimund Roeseler, head of banking supervision at financial markets watchdog Bafin, said that German lenders should be ready.
"All banks understood over the past 12 months that they would have to take care of any homework that was still outstanding," Roeseler told Handelsblatt Live digital newspaper.
He said that banks and their supervisors are fully aware of the importance of the asset quality review and stress tests to be completed before the ECB takes over responsibility for banking supervision in November, adding: "It is clear to everyone that if the next stress test is not successful, we will have a huge problem in the financial markets."
Turning to regulatory investigations of possible price manipulation in foreign currency trading, Roeseler said he was shocked by the greed and unscrupulousness displayed by some individuals.
"Libor was already big but the currency issue certainly has the potential for a scandal," he said, referring to a separate investigation into the manipulation of benchmark interest rates such as Libor, for which a clutch of banks paid billions of dollars in fines and settlements.
In January, a source told Reuters that Deutsche Bank had suspended the head of its emerging markets foreign exchange trading desk in New York in connection with ongoing investigations into the alleged manipulation of the global currency market. (Reporting by Jonathan Gould; Editing by Thomas Atkins and David Goodman)