(Corrects abbreviation to L-Bank, paragraph 2)
BRUSSELS, May 16 (Reuters) - An EU court ruled on Tuesday that a bank owned by a German state should be subject to supervision by the European Central Bank, rejecting a rare challenge to the EU central bank’s authority.
The Landeskreditbank Baden-Wuerttemberg-Foerderbank (L-Bank) challenged the ECB’s decision to classify it as a “significant entity”, meaning it should be subject to ECB supervision. The ECB argument was based partly on the fact L-Bank’s assets exceed 30 billion euros.
L-Bank had argued it should be considered a “less significant” entity, meaning it could be supervised by national authorities. (Reporting by Philip Blenkinsop; Editing by Alastair Macdonald)