View more on these topics

RBS and Standard Chartered singled out in Bank stress test


Royal Bank of Scotland and Standard Chartered have been singled out as the weakest of seven lenders in a Bank of England stress test.

The BBC reports the Bank has subjected the UK’s seven largest lenders to tests to measure whether they would survive a financial shock.

Banks were tested against a scenario where oil had fallen to $38 a barrel and the global economy had slumped.

RBS and Standard Chartered were found not to have enough capital strength, but both took steps to raise additional capital.

The lenders were not told by the Bank to come up with a new plan, as Co-operative Bank was last year after similar tests.

The five other lenders tested – HSBC, Barclays, Lloyds Banking Group, Santander and Nationwide – did not have to take action.

RBS chief financial officer Ewen Stevenson says: “We are pleased with the progress we have made relative to the 2014 stress test, but recognise we still have much to do to restore RBS to be a strong and resilient bank for our customers.”

Standard Chartered chief executive Bill Winters says: “The results of the test demonstrate our resilience to a marked slowdown across the key markets in which we operate.

“The test was conducted on our balance sheet as at the end of 2014. Since then we have made further significant progress in strengthening our capital position.

“We are operating at capital levels above current minimum regulatory requirements and have a number of additional levers at our disposal to further manage capital.”

All banks were told they would have to set aside capital to protect their UK exposures as part of a new measure the Bank is phasing in called a countercyclical capital buffer.



Age limits

The credit crunch has put paid to the plentiful supply of lending into retirement products and now older people are facing a rapidly shrinking market as providers cut the maximum age on their standard mortgage ranges 


Why it’s important to choose your network carefully

When choosing a network, the importance lies in the opportunities open to advisory firms, such as conveyancing There seems to be a continual debate around the benefits (or otherwise) of advisory firms using networks and either opting for or continuing their authorised representative status. Over the past few weeks, dissenting voices have been raised about […]

Six freezes at 4 percent but Charcol say the future & 39s already fixed up

The Bank of England’ Monetary Policy Committee yesterday held interest rates at 4% – for the sixth time in a row. The most recent change in interest rates was a reduction of 0.50% to 4.0% on November 8 2001 – seven months ago! The Confederation of British Industry welcomed the decision. Ray Boulger, senior technical […]

FCA logo new 3 620x430

FCA eyes FOS payout cap hike

The FCA is considering raising the FOS compensation cap from the current level of £150,000. In a discussion paper published today on how it deals with small businesses, the regulator outlines options to expand its eligibility criteria. It says irrespective of expanding its scope, the maximum pay out may need to be raised from £150,000. […]


News and expert analysis straight to your inbox

Sign up