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Actionable news in NBG: NATIONAL BANK OF GREECE S.A.,

Eastern Europe in focus amid bank test failures and extra losses

* Three Greek banks failed Europe-wide bank health check

* They have units in Romania and Bulgaria

* Analysts: selling units would boost parent's capital

* Other banks take hits on some CEE operations

By Tsvetelia Tsolova and Radu-Sorin Marinas

SOFIA/BUCHAREST Oct 26 (Reuters) - Some of the strongest ripples from the European Central Bank's landmark stress tests could be felt in eastern Europe as multinational lenders short of capital mull the future of their Balkan operations, while others face extra losses.

The 25 banks that failed the health check included four which own subsidiaries in eastern Europe. Some banks that passed were found to have overvalued their assets in the region by a significant margin, something that will force them to hold more capital and makes them likely to eventually face extra losses.

"The Greek banks have relatively profitable units in eastern Europe and selling them off looks like the easy and fast way to ensure capital. This is a possible option," said Lachezar Bogdanov, an economic analyst with Sofia-based think-tank Industry Watch.

Greece's Eurobank, Piraeus Bank and National Bank of Greece, all failed the ECB's test based on the narrow definition of not having enough capital at the end of last year. They will have to issue little if any new equity, but they will have to stringently stick to their restructuring plans which involve reducing Balkan and other international holdings.

Central European units were a drag on Raiffeisen and Erste Bank, who were found by the ECB to have overvalued their assets in the region, along with Norway's DNB which the ECB said...