BoE stress tests find banks resilient to interest rate risk
Credit impairments drive majority of losses, but all banks pass test
The Bank of England’s latest stress test finds major UK banks should be able to withstand rising interest rates and major credit impairments.
Results of the “annual cyclical scenario”, published today (July 12), show all of the institutions that underwent testing remained above regulatory minimum capital ratios.
Barclays’ regulatory capital hit the lowest level of any bank after the stress-test scenario was imposed. Its risk-weighted capital ratio fell to 8.5% and leverage ratio to 3.7%.
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