The European Banking Authority said on Friday it had received all the extra information it wanted from banks, paving the way for publication of its sector health-check this month

The European Union watchdog is stress testing 91 lenders to see whether they can still stand on their own feet in the face of scenarios such as the economy shrinking for two consecutive years or big falls in house prices.

The aim is to restore investor confidence in a sector still being propped up by taxpayers in parts and under pressure to contribute to a Greek bailout.

The EBA planned to publish the result in June but had to ask banks to resubmit information because it was too optimistic. It also toughened up the impact of a big ratings downgrade on sovereign debt -- putting countries like Greece into theoretical default.

"All the data is now in, and we are now entering the third phase of peer review," an EBA spokeswoman said.

Officials familiar with the stress test said the need to put further questions to banks could not be ruled out but that the results are expected to be published in July.

The date may be disclosed next week.

Some banks, however, believe the EBA may be forced to delay publication beyond mid-July.

"The EBA will never make their deadline. I think it's highly unlikely that it will publish the stress test results by July 13. The stress tests are in complete disarray," a chief executive of a German landesbank participating in the health-check told Reuters.

"Even now, new questions keep arriving. The reason is that the EBA is realising that not as many banks will fail as it had hoped in order to rebuild its own credibility - so it keeps adjusting the test," the CEO said.

Last year's test was judged a flop after only seven lenders failed, none of them from Ireland, even though Ireland's banks later had to be rescued by a bailout from the EU and International Monetary Fund.

EBA Chairman Andrea Enria has staked the fledgling watchdog's reputation on delivering a credible stress test.

"We expect the EBA to come back with more questions. It looks like the EBA is adjusting the test in a way that will produce this many failures -- and this way rebuild its own credibility," a manager at another German bank said on condition of anonymity.

Reuters reported this week that up to 15 lenders may fail the test, but Enria said on Wednesday that a result has not yet been reached.

Sources have told Reuters the results will be published mid-July, probably just after a meeting of EU finance ministers on July 12 to discuss the results first and make sure "backstops" are in place, if needed, to prop up lenders that fail.

Source Reauters Reporting by Huw Jones in London, and Arno Schuetze in Frankfurt