Annual financial health assessment will focus only on seven biggest lenders and could require them to hold more capital in order to passThe UK’s seven biggest lenders are to be subjected to more sophisticated assessment of their financial health by the Bank of England,in a straggle that could require them to hold more capital to withstand the tests based on shocks to the financial system.
Outlining its approach to stress testing for the next three years on Wednesday, the Bank said it would focus only on the seven biggest banks and building societies. This means it will not include smaller banks such as TSB or Virgin Money, or the UK arms of international investment banks or fund managers.
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Source: theguardian.com