Stress tests to be done every year, but AQR too complex - ECB's Constancio

LONDON (Reuters) - The euro zone will stress test its banks every year from now on, the European Central Bank's Vice President said on Wednesday, but added a full scale Asset Quality Review was too complex to be done that often.

"No one is expecting the very broad asset quality review that was conducted will be done every year," Vitor Constancio said at a Financial Times banking summit.

"Stress tests? Yes. That is part of the apparatus both in terms of the EBA (European Banking Authority)... and also in terms of the SSM (supervisory) responsibility we will need to conduct."

On the ECB's current asset buying programme, he added he thought some -although not all- euro zone government would be willing to provide state guarantees to allow the central bank to buy lower grade Asset Backed Securities.

(Reporting by Marc Jones and Steve Slater)