WestLB, the beleaguered state-owned German bank, could be forced to take additional risk provisions after a further "thorough" review by auditors Ernst & Young was completed, bankers said yesterday.

However, they said the review into the Düsseldorf-based bank - expected to be completed within six-eight weeks - was unlikely to result in the additional €1.5 billion in charges mooted by the German press at the weekend.

Mr Johannes Ringel, WestLB's interim chairman, will give details of the review to the bank's supervisory board on Wednesday and of a shake-up of risk controls, heavily criticised by Germany's financial regulator.

Mr Ringel took over WestLB from Mr Jürgen Sengera, forced out by shareholders last week in the wake of a report by BaFin, the regulator, on the bank's inadequate risk management.

The inquiry, made for BaFin by Ernst & Young, was initiated after WestLB revealed a €1.7 billion loss for last year following a belated charge of €430 million - caused by a deal with BoxClever, the British television rental group. The BoxClever financing was carried out by the bank's London-based principal finance unit run by US investment banker Ms Robin Saunders.

BaFin has handed its findings to the Düsseldorf state prosecutor's office.

It is understood the regulator has reviewed 14 other deals where credit exposure is substantial. Insiders say these cases do not relate exclusively to business carried out by Ms Saunders's unit. BaFin is to complete a second report on these deals soon. - (Financial Times Service)