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January 14, 2014 AT 12:55 PM
The ECB is set to allow the euro zone's top banks to meet less stringent definitions for bad loans than previously planned when it makes an unprecedented review of lenders' balance sheets this year. The 128 lenders under scrutiny by the European Central Bank were allowed to apply the softer "simplified definitions" for bad loans in their first data submissions for the asset quality review. Two sources with knowledge of the matter said the banks, which will come under ECB supervision later in 2014, will be able to use the easier definitions for the rest of the assessment too.