The UK central bank’s annual stress test scenario states UK banks were “resilient to a severe stress scenario”, which includes higher inflation and increasing global interest rates and a “deep simultaneous recession”.
The Annual Cyclical Scenario examined the capabilities of the UK's retail banks to withstand a variety of macroeconomic pressures "more severe than the 2007-08 global financial crisis". According to the Bank of England: "UK banks would be resilient to a severe stress scenario that incorporated persistently higher advanced-economy inflation, increasing global interest rates, deep and simultaneous recessions in the UK and global economies with materially higher unemployment, and sharp falls in asset prices." Ed Balls: Truss and Kwarteng's legacy is 're-establishment' of consensus The...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
