LONDON (AP) — The Bank of England says the country’s seven biggest lenders have passed stress tests designed to see if they withstand deterioration in global economic conditions.
The annual check of the health of the financial institutions found that five the seven participating institutions, Barclays, HSBC, Lloyds Banking Group, Santander UK, and the largest building society, Nationwide, showed no capital inadequacies.
The Royal Bank of Scotland Group did not meet its individual capital guidance after management actions and Standard Chartered did not meet one of its capital requirements. But the Prudential Regulatory Authority did not ask either to submit a new plan, as both institutions were already taking steps to strengthen their capital position.
The Bank of England modeled how banks would react to a sharp drop in Chinese economic growth.
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