Stress tests MFIS come in early for UK and German banks (Reuters)

Frankfurt/London (Reuters) - The International Monetary Fund performs a health check of top banks in Britain, Germany and three countries, just as Europe hammers details on his own most severe industry "stress test".

The round of the IMF European health checks will begin in Britain, three sources said Reuters, which will be followed by the Netherlands, Sweden, Germany and the Luxembourg.

Separately, European banking (EBA) Authority plans a more severe test of banks in Europe that a health check last year, which was violently to find only a small just before capital deficit problems spirals in banks forced an international bailout by the Irish Government.

The ABE test based on a capital definition near base of tier 1, rather than reporting level used less stringent 1 last year, said a person notified by German regulators.

The number of banks being tested will be similar to 91 last year.

The EBA has refused to comment, saying that the details are still in discussion. The German source said the final list of participants and scenarios will be determined by the end of February and mid-April the results will be sent to the national regulatory authorities. The EBA is expect to publish the result at the end of June, says the source.

Tests come as a credit rating agency study concluded more than 30 top banks of the world - including Credit Switzerland (CSGN.)(VX), Bank of America (BAC.)(N) and Mizuho Financial (8411.T) - capital insufficient to resist a big problem. (http://tinyurl.com/6jz3g4u)

Standard & Poor says more banks improved in the last two years their adequacy but much falls still short and positions in the capital of banks (RBA) risk-adjusted is "generally weakness rating."

TESTS OF THE IMF

Sector assessment programs of the IMF or FSAP, is in-depth analysis of the financial sector of the country and was made mandatory in September to 25 countries "important systemic", a movement in order to prevent another global crisis.

Top banks test of Britain, including HSBC (HSBA.)(L), Barclays (BARC.)(L) and (LLOY) Lloyds banking group(L), expected to take several weeks, sources said.

Tests in all five countries will be carried out in the first quarter of this year, said the spokesman of the IMF.

"We did not have an FSAP for many years." It should be given a number of things have changed in terms of our financial structure, since the last full IMF FSAP here, "said Jonas Niemeyer, Chief of the Swedish Central Bank policy and analysis division.

"We look forward an external evaluation of all the problems that we can and we are seeing such an assessment as potentially being a very important and useful tool." It is always nice to have a second opinion. Is our system just and appropriate or not? »

The ABE process should include a test of liquidity, that was missing from last year.

Heads of two largest banks Italy, UniCredit SpA (IDRC.)(MI) Chief Executive Federico Ghizzoni and Intesa Sanpaolo SpA (PSA.)(MI) CEO Corrado Passera, hosted a new emphasis on liquidity in the new tests by Brussels.

"They were definitely be on capital and liquidity." They are two very important elements, although for me the liquidity is almost more important than capital, "Ghizzoni has told reporters outside of a meeting in Rome."

In his study, S & P found that the average ratio of RAC for banks was 8 per cent at the end of June 2010, compared to 6.7% a year earlier, said S & P.

Commerzbank Germany (CBKG.)(DE), Raiffeisen Austria (RBIV.)(VI) and Mizuho Financial Japan the classified near the bottom of the study, each with cars of less than 5% ratios.

Faring poorly were also Credit Switzerland and the Canadian Imperial Bank of Commerce (CM)(TO) - 5.8% at both. Deutsche Bank (DBKGn.DE), Lloyds (LLOY.)(L), Bank of America and Citigroup (C.N) had RAC ratios less than 7.5%.

Banks in the Japan and Austria had ratios mean more low, Australia, Singapore, Hong Kong, lenders and the Nordic countries had the highest.

(Additional by Mia Shanley in Stockholm, Stefano Bernabei in Rome and Edward Taylor in Frankfurt;) (Editing by Douwe Miedema, David Cowell and David head)