ECB says Portugal's Novo Banco won't be part of health checks

FRANKFURT: Portugal's Novo Banco, created from the bailout of Banco Espirito Santo, will not be part of the European Central Bank's bank health checks, the ECB said on Friday.

"In this case as the institution has been thoroughly restructured, timing constraints do not allow that the comprehensive assessment can be completed for publication in the latter half of October," an ECB spokesman said in an email statement.

Novo Banco was carved out as the 'good bank' in the 4.9 billion euro rescue, while Banco Espirito Santo, or the 'bad bank' was left with the group's toxic debts. Initially, Espirito Santo Financial Group had been part of the ECB's comprehensive assessment.