For first time lenders including RBS occupy been tested on resilience over seven-year scenario and not just to economic shocks The Bank of England is to reveal the damage inflicted on the UK’s biggest lenders from £30bn of hypothetical consumer loan losses, an economic downturn and a collapse in the pound.
Threadneedle Street’s latest health check on the sector – the first was conducted in 2014 – could occupy an impact on a bank’s ability to pay dividends and on its business models. The lenders could be forced to sell off assets or query existing shareholders and bondholders for more cash if they fail the tests based on hypothetical scenarios intended to place the sector under severe stress.
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Source: guardian.co.uk