All UK Banks pass the Bank of England Stress Test
For the first time since the 2008 financial crisis, all of the major UK banks have passed the Bank of England’s stress test.
The stress test uses a scenario of adverse economic indicators. A 33% fall in house prices, interest rates increased to 4% within 2 years and unemployment rising from 4.3% to 9.5%.
In 2016 Barclays and RBS had failed the stress test and have now improved their financial position.
Bank of England governor Mark Carney has said that the banks could continue to lend money to support the UK economy even in “the unlikely event” of a no deal when Brexit happens.
