|BANK OF ENGLAND STRESS TESTS TO INCLUDE FEARED GLOBAL CRASH|
Aruba, April 2, 2015 - Scenarios to gauge UK banks’ ability to weather economic shocks include a dramatic slowdown in China and prolonged period of global deflation
The Bank of England is to impose a series of tests on large UK banks to establish whether they are able to withstand a dramatic slowdown in China, a contraction in the eurozone, the worst deflation since the 1930s or a fall in UK interest rates to zero.
The Co-operative bank – which failed last year’s tests – is no longer included in the annual assessments of the industry’s financial strength as it is too small, leaving six banks and the Nationwide building society to be tested.
The banks are Barclays, HSBC, Santander UK, Standard Chartered and the two bailed-out banks, Lloyds Banking Group and Royal Bank of Scotland.
Read more: http://www.theguardian.com/business/2015/mar/30/bank-of-england-stress-tests-to-include-fears-of-global-crash