PORTOROZ: The European Central Bank expects euro zone banks to be in a stronger position to lend to the bloc's companies and households once they concluded the ECB's unprecedented health check, ECB Executive Board member Benoit Coeure said on Friday.
Coeure said he also expected banks to tap the ECB's new four-year loans more once the tests had finished.
The ECB is putting the euro zone's 131 largest banks through an assessment to try to weed out soured loans and check how they hold up under certain shock scenarios before it takes over as the bloc's bank supervisor in November.
"Once the final results are known and residual uncertainty is removed, banks will be in a stronger position to resume new lending," Coeure said in the text of a speech at a high-level seminar by the International Monetary Fund and Slovenia's central bank.
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