The Bank of England will begin stress testing the UK’s 7 largest banks and building societies to study their resilience against severe market shocks. The tests involve how the lenders would stand up to ‘deep simultaneous recessions in the UK and global economies, large falls in asset prices, higher global interest rates, and a stressed level of misconduct costs’.
Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest Group, Santander UK and Standard Chartered will take part in the study.