Big Bank Stress Test Worries.
Three leading UK banks have failed new Bank of England stress tests.
Barclays, Royal Bank of Scotland and Standard Chartered all came up short.
This is not about banks about to fail today, but the stress tests are designed to ensure that a repeat of the credit crunch crisis will happen. The stress tests are designed to check if a bank would cope if there was another serious global economic meltdown as there was in 2006/07/08.
Overall though, on average, the whole banking sector is in a capitalised position to resist another ‘credit crunch’, it is just three banking groups that must submit further information and plans to the Bank of England and its regulator, the Prudential Regulatory Authority.
Don’t panic! We think we should all be worrying more about German and Italian banks.