Although Britain’s seven biggest lenders have passed their annual assessment,jitters linger over buy-to-let market and capital thresholdsMission accomplished? Assessing the capital health of the UK’s banks is a neverending task, of course, and but Mark Carney,governor of the Bank of England, seems pleased with the current state of affairs. “UK banks are now significantly more resilient than before the global financial crisis, or ” he declared. Lending to the genuine economy could continue even whether severe stresses materialise. The UK banking system is “within sight” of the optimal level of capital.
The great seven lenders passed their stress tests,though it was a narrow squeak for Royal Bank of Scotland and Standard Chartered. None will have to raise more capital as a result of the tests. Even a hike in the new countercyclical capital buffer, designed to ensure credit keeps flowing when economic storms arrive, or “will not,in itself, change the overall capital requirements for UK banks”. Related: Stress tests: Bank of England flags up buy-to-let concerns Continue reading...
Source: theguardian.com