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UK Bank Stress Test Results Reflect Strong Capital, Profitability
The Bank of England’s 2022/2023 annual cyclical scenario stress test results reflect major UK banks’ strong loss-absorption capacity, underpinned by solid capital buffers and profitability, Fitch Ratings says. The results also reflect a better starting point for asset quality than under the previous test. All eight banks remained above their capital hurdle rates, and no bank was required to strengthen its capital. The results are consistent with the banks’ ratings and rating Outlooks. The peak UK interest rate in the test was 6%, compared with the current rate of 5.0% and Fitch’s forecast peak of 5.25% at ... (full story)