UK Banks face stress test results

11:16, 16 December 2019



It’s the moment of truth for the UK's biggest financial institutions as later today the Bank of England will publish the results of its bank stress test, otherwise known as annual cyclical scenario (ACS). By using the test to determine how much capital UK banks could need in such a scenario, the Bank aims to ensure they are able to continue to lend to households and businesses in bad times as well as good.

Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland, and Santander UK all took part in the 2019 test, which contains three types of severe stress which are assumed to be synchronized:

• A UK and global macroeconomic stress, spanning a five-year period to the end of 2023

• A traded risk stress, linked to a financial market scenario consistent with the content and calibration of the macroeconomic stress

• A misconduct costs stress

FTSE 100 opened at 7317.15 quickly rising above 7430, while GBP/USD gained 0.23% at 11:00 GMT, ahead of the Financial Stability Report scheduled at 16:00 GMT.

Stay tuned to Capex’s news section for more information and the latest updates!


Sources: bankofengland.co.uk, moodysanalitics.com, reuters.com

The information presented herein does not constitute and does not intend to constitute Investment Advice. The information contained herewith is a compilation of public stock recommendations issued by various financial analysts and organized in an easily presentable format, for information purposes only. Key Way Investments Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation. Users/readers should not rely solely on the information presented herewith and should do their research/analysis by also reading the actual underlying research. Users/readers should also consider the risk of encountering significant losses when trading CFDs. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.

HIGH-RISK INVESTMENT WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Why Capex.com?

  • CAPEX is a fully regulated broker. We’re licensed by CySEC and registered by multiple finance entities around the globe.

  • We put safety first! Our security systems and measures are designed to keep your data and funds safe at all times.

  • We designed our trading conditions to meet the needs of even the most sophisticated traders!

  • Trade over 2,100 CFDs (Contracts For Difference), from Forex and Indices to ETFs, Commodities and Cryptocurrencies!