BOE to Hold Broader Stress Tests Alongside Annual Checkup

The Bank of England said on Monday it would hold a broader stress test of British banks’ resilience alongside its regular annual check-up of their financial health.

The central bank will release the results of this year’s stress test at 0700 GMT on Nov. 30, alongside its half-yearly Financial Stability Report, and will go ahead with plans set out in 2015 to conduct a broader test as well in 2017.

“Next year the Bank of England’s stress test of major banks will for the first time include two scenarios. In addition to the Annual Cyclical Scenario … there will be an additional ‘exploratory’ scenario,” the BoE said.

“This will allow banks’ resilience to a wider range of potential threats to be assessed,” the BoE added.

The annual stress test typically focuses on potential near-term threats to banks. This year’s test looks at the dangers from a “severe slowdown” in the British and global economy.

The lenders undergoing the stress tests in 2017 will be the same as those under scrutiny on Nov. 30 – Barclays (BARC.L), HSBC (HSBA.L), Lloyds Banking Group (LLOY.L), Nationwide Building Society, Royal Bank of Scotland (RBS.L), Santander UK (SAN.MC) and Standard Chartered (STAN.L).

The central bank also released a record of its Financial Policy Committee’s latest quarterly discussions which took place on Sept. 20.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.