Most UK banks pass stress tests
The Bank of England has revealed seven out of the eight biggest high street lenders passed its rigorous stress test.
Almost all the UK's main high street banks have passed the Bank of England stress tests, indicating they could keep on functioning fully even in a dire economic crisis.
The Bank's December Financial Stability Report indicated that five of the institutions - HSBC, Barclays, Santander, Standard Chartered and Nationwide - passed comfortably. The position was less clear-cut at Lloyds and the Royal Bank of Scotland (RBS), both of which only passed by a small margin. The Co-operative Bank was the one institution to fail.
With future stress tests to be applied to issues outside the scope of the current regime - like the risks from overseas markets - banks may need to take on more auditors to make sure they continue to pass stress tests.
The Co-operative Bank, which is currently working through its own detailed recovery plan, said it was not surprised that it did not pass the test at this stage, as it will take time to resolve balance sheet problems.
Speaking to the BBC, the man behind the tests, Andrew Bailey, said it would not be necessary for Lloyds or RBS to take fresh remedial measures.
He said: "We have to bear in mind the major tasks that both banks have had to rebuild their capital positions and their resilience from the depths of the crisis."
The checks carried out by the Bank of England were very rigorous, as the scenario against which the banks were being tested included a series of dire circumstances coming together all at once, such as unemployment reaching 12 per cent, house prices falling by 35 per cent and consumer prices index inflation soaring to 6.6 per cent, all situations that would be worse than anything that has happened since 2007.
As a result, the chances of the banks that encountered difficulties in meeting the requirements actually struggling to remain in business are fairly remote.
One reason for this is that even if there is a major economic downturn in a few years hence, by then the remedial action being taken by banks will have had more chance to take effect, thus ensuring they are in a more robust position.
Signup to receive the latest discipline specific articles
Related jobs
Salary:
Equity, Bonus and Benefits
Location:
London
Industry
Healthcare
Qualification
Fully qualified
Market
Executive Search
Salary
£125,000 - £175,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is partnering with a dynamic, PE-backed Multisite Healthcare Services business to recruit a CFO.
Reference
TA3408
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£500 - £550 per day + Outside IR35
Location:
Birmingham, West Midlands
Industry
Business Services
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£350 - £450
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Marks Sattin is partnering with a large organisation in the Midlands to recruit an Interim FP&A Consultant within their Finance Transformation team.
Reference
BBBH183614
Expiry Date
01/01/01
Author
Anthony MillsAuthor
Anthony MillsSalary:
£50,000 - £55,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
Finalist / Newly qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Newly Qualified Finance
Contract Type:
Permanent
Description
I am delighted to be partnering with a leading UK-based business to find a Senior Accountant to join their dynamic finance team in Leeds!
Reference
18359020
Expiry Date
01/01/01
Author
Laura GunbyAuthor
Laura GunbySalary:
£50,000 - £60,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
Finalist / Newly qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Newly Qualified Finance
Contract Type:
Permanent
Description
I am delighted to be working in partnership with a large business in Holbeck to recruit for a newly created Management Accountant role.
Reference
56263263
Expiry Date
01/01/01
Author
Laura GunbyAuthor
Laura GunbySalary:
£60,000 - £70,000 per annum + 15% Bonus
Location:
Uxbridge, London
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Group Accountant - Uxbridge (Hybrid) - £60,000 to £70,000 + 15% bonus
Reference
BBBH183613
Expiry Date
01/01/01
Author
Neil BurtonAuthor
Neil BurtonSalary:
Negotiable
Location:
Lancing, West Sussex
Industry
Investment Management
Qualification
None specified
Market
Financial Services
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
A newly created position to join a Private Equity firm to assist with their growth within the Finance function.
Reference
BBBH183611
Expiry Date
01/01/01
Author
Thomas SteelAuthor
Thomas SteelSalary:
£28,000 - £30,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Purchase Ledger clerk - South Leeds
Reference
BBBH183605
Expiry Date
01/01/01
Author
Cameron WalshAuthor
Cameron WalshSalary:
£27,000 - £28,000 per annum
Location:
Chester, Cheshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£25,000 - £30,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Accounts Assistant
Reference
BBBH183497
Expiry Date
01/01/01
Author
Glenn FyfeAuthor
Glenn FyfeSalary:
£40,000 - £55,000 per annum
Location:
London
Industry
Consumer & Retail
Qualification
Part qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Seeking a VAT Analyst for a 6-month contract within a consumer retail business based in Central London.
Reference
JSM1747541
Expiry Date
01/01/01
Author
Jamie SmithAuthor
Jamie SmithSalary:
£50,000 - £60,000 per annum
Location:
London
Industry
Healthcare
Qualification
Part qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Seeking a Finance Manager for a 3-month contract for a public sector organisation.
Reference
JSM174775
Expiry Date
01/01/01
Author
Jamie SmithAuthor
Jamie Smith