You need to enable JavaScript in order to use the AI chatbot tool powered by ChatBot

Most UK banks pass stress tests

Andrew Barnes our consultant managing the role

The Bank of England has revealed seven out of the eight biggest high street lenders passed its rigorous stress test.

Almost all the UK's main high street banks have passed the Bank of England stress tests, indicating they could keep on functioning fully even in a dire economic crisis.

The Bank's December Financial Stability Report indicated that five of the institutions - HSBC, Barclays, Santander, Standard Chartered and Nationwide - passed comfortably. The position was less clear-cut at Lloyds and the Royal Bank of Scotland (RBS), both of which only passed by a small margin. The Co-operative Bank was the one institution to fail.

With future stress tests to be applied to issues outside the scope of the current regime - like the risks from overseas markets - banks may need to take on more auditors to make sure they continue to pass stress tests.

The Co-operative Bank, which is currently working through its own detailed recovery plan, said it was not surprised that it did not pass the test at this stage, as it will take time to resolve balance sheet problems.

Speaking to the BBC, the man behind the tests, Andrew Bailey, said it would not be necessary for Lloyds or RBS to take fresh remedial measures.

He said: "We have to bear in mind the major tasks that both banks have had to rebuild their capital positions and their resilience from the depths of the crisis."

The checks carried out by the Bank of England were very rigorous, as the scenario against which the banks were being tested included a series of dire circumstances coming together all at once, such as unemployment reaching 12 per cent, house prices falling by 35 per cent and consumer prices index inflation soaring to 6.6 per cent, all situations that would be worse than anything that has happened since 2007.

As a result, the chances of the banks that encountered difficulties in meeting the requirements actually struggling to remain in business are fairly remote.

One reason for this is that even if there is a major economic downturn in a few years hence, by then the remedial action being taken by banks will have had more chance to take effect, thus ensuring they are in a more robust position.

11/04/16
jobs

Related jobs

Specialist FSSC

Salary:

Up to €60,000 per annum

Location:

Rotterdam, South Holland

Industry

Energy, Resources and Industrial

Qualification

None specified

Market

Professional Services

Salary

£50,000 - £60,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Als Specialist Financiële Processen SSC binnen een toonaangevende organisatie draag je zorg voor een efficiënte en effectieve afhandeling van financiële administratieve processen.

Reference

BBBH184301

Expiry Date

01/01/01

Aram  Outmaijjer Find out more
Head of FSSC

Salary:

Up to €84,000 per annum

Location:

Rotterdam, South Holland

Industry

Manufacturing

Qualification

Fully qualified

Market

Professional Services

Salary

£70,000 - £80,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

Ben jij een financiële professional met sterke analytische vaardigheden en een strategische visie? Heb je een passie voor procesoptimalisatie en het verbeteren van financiële dienstverlening?

Reference

BBBH184300

Expiry Date

01/01/01

Aram  Outmaijjer Find out more
Group Reporting Manager

Salary:

£65,000 - £73,000 per annum + Excellent Benefits Package

Location:

Manchester, Greater Manchester

Industry

Consumer & Retail

Qualification

Fully qualified

Market

Commerce & Industry

Salary

£70,000 - £80,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

Exciting Group Reporting Finance Manager for a leading retail organisation based in Manchester offering hybrid working paying circa £70,000.

Reference

BBBH184314

Expiry Date

01/01/01

Nathan  Jones

Author

Nathan Jones
Find out more
Transactional Finance Manager

Salary:

Negotiable

Location:

Horsham, West Sussex

Industry

Technology

Qualification

None specified

Market

Commerce & Industry

Salary

£60,000 - £70,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Our high growth client in the tech/SAAS industry are looking for a new Transactional Finance Manager to join their finance team.

Reference

129384

Expiry Date

01/01/01

Harry Latham

Author

Harry Latham
Find out more
Tax Accountant

Salary:

Up to £45,000 per annum

Location:

Leeds, West Yorkshire

Industry

Business Services

Qualification

None specified

Market

Financial Services

Salary

£40,000 - £50,000

Job Discipline

Tax

Contract Type:

Permanent

Description

.

Reference

BBBH184306

Expiry Date

01/01/01

Aleksandra  Taranovskaja Find out more
Credit Controller

Salary:

£30,000 - £32,000 per annum

Location:

Leeds, West Yorkshire

Industry

Business Services

Qualification

None specified

Market

Commerce & Industry

Salary

£30,000 - £35,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Credit Controller in Leeds

Reference

BBBH184266

Expiry Date

01/01/01

Cameron  Walsh

Author

Cameron Walsh
Find out more
DMS Developer

Salary:

Up to £36,000 per annum

Location:

City of London, London

Industry

Professional Services

Qualification

None specified

Market

Professional Services

Salary

£35,000 - £40,000

Job Discipline

Software Development

Contract Type:

Permanent

Description

DMS Developer

Reference

BBBH184283

Expiry Date

01/01/01

Shammi  Choudhury Find out more
View all jobs