UK banks will withstand any ‘disorderly’ Brexit deal, Bank of England says

Further to the ability to withstand economic shocks, banks were tested under exploratory conditions for initially. This particular scenario tested lender’s resilience over seven years of tepid global growth, low-interest rates along with high legal costs.

Last year, RBS, Barclays along with Standard Chartered were found to have faults under the Bank’s testing conditions, with RBS forced to submit plans to the regulator explaining how in which would certainly raise capital in order to cope with any financial shocks.

In last week’s Autumn Budget, U.K. Finance Minister Philip Hammond said the Treasury wanted to sell off £15 billion of its stake in RBS. along with while in which would certainly amount to approximately two-thirds of the lenders’ current value, in which would certainly leave U.K. taxpayers which has a £26 billion loss.

Stress tests have gained in popularity since the global financial crisis a decade ago, when several lenders across the entire world either collapsed or were bailed out by governments. At the time, Britain moved to pump billions of pounds into both RBS along with Lloyds to keep them afloat.

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