UK banks: should they stress about the tests?

 

Transcript

On 1 December 2015, the Bank of England (BoE) published the results of its second annual Concurrent Stress Test (CST) on the seven largest UK banking institutions. These latest stress tests modeled a particularly severe slow-down in the Chinese economy, with a knock-on effect on house prices and financial markets in the region.

While all banks passed the quantitative hurdles, the BoE clearly believes that banks still have considerable work to do to enhance their stress testing capabilities. The pass mark for next year’s stress test will be higher and the scenarios may well be more severe if the economy continues to improve.

So what do the stress tests say about Britain’s financial system resilience? Hortense Huez and Michael Snapes from our Financial Services Risk and Regulation practice discuss this and more in our video. Watch it and find out:

  • what the implications are for the seven lenders as well as the other banks;
  • what banks can expect next year;
  • what this means for the CFOs of our major UK banks.

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Bank of England stress test results