What will the banks have to do?
The UK’s biggest banks will have to face new stress tests, there will be a varied amount of challenges.
One test will need to see that the banks can manage a sudden slowdown in foreign interest in UK assets.
All banks will have to have the resources in place to cope with any shocks.
Those taking part are Barclays, HSBC, Lloyds, RBS, Santander UK, Standard Chartered and Nationwide.
The Bank of England said: “As highlighted in recent financial stability reports, the United Kingdom’s large current account deficit creates a vulnerability to a reduction in foreign investor appetite for UK assets and increases in funding costs for real-economy borrowers.”
In its annual cyclical scenario, banks have to show they can cope with a recession in the global economy as well as the UK, interest rates will peak at four per cent, house prices will fall by a third.
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