A framework for stress testing the UK banking system

The Financial Policy Committee (FPC) recommended in March 2013 that, ‘looking to 2014 and beyond, the Bank and Prudential Regulation Authority (PRA) should develop proposals for regular stress testing of the UK banking system. The purpose of those tests would be to assess the system’s capital adequacy’.
Published on 01 October 2013

This Discussion Paper — produced by staff at the Bank of England under the guidance of the FPC and the PRA Board — sets out the main features of the proposed stress-testing framework. Its aim is to elicit feedback from interested parties to help inform FPC and PRA Board decisions over the ultimate design of the stress tests.

PDFA framework for stress testing the UK banking system

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