[Reuters] Austria to turn Volksbanken into "bad bank" - sources
[OTVVp.VI] VIENNA, Oct 2 (Reuters) - Austrian part-nationalised lender Volksbanken AG <OTVVp.VI> (OVAG) will be turned into a "bad bank" and wound down in a step that aims to resolve a looming capital gap at the group, comprising the bank and its majority owners, two sources familiar with the plan said on Thursday. The plan comes amid European health checks of big banks' balance sheets. The step, which would avoid having Austria put more aid into the group that is majority owned by dozens of regional banks, must still win regulatory approval, the sources said. Other parts of the group would take on OVAG's good assets under the plan. Volksbanken, one of six Austrian lenders undergoing strict scrutiny of their balance sheets before results of a stress test emerge late this month, and the finance ministry declined to comment ahead of a news conference the bank called for 1600 GMT.