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Home > Financial Stability > Stress Testing
 

Stress Testing

2016 concurrent stress test

The Bank of England’s approach to stress testing the UK banking system’ was published in October 2015, and sets out the main features of the Bank’s framework to 2018 (see related links).  The 2016 stress test scenario is the first designed under that framework and details were published on 29 March 2016 in the ‘Key elements of the 2016 stress test’.

Background

In March 2013, the Financial Policy Committee (FPC) recommended that regular stress testing of the UK banking system should be developed to assess the system's capital adequacy.  The inaugural concurrent stress test results were published on 16 December 2014 and explored vulnerabilities stemming from the UK household sector.   The results of the 2015 stress test were published on 1 December 2015.  The 2015 stress test scenario was designed specifically to assess the resilience of UK banks and building societies to a deterioration in global economic conditions.  

The Bank continues to build its own stress-testing capabilities, and expects banks and building societies to do the same. More broadly, the design of the overall stress-testing framework will evolve over time.

 
 
 
 
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