Thursday 22 October 2015

UK: The Bank of England's approach to stress testing the UK banking system

The Bank of England has published a document setting out its approach to stress testing the UK banking system: see here (pdf). Covering the period to 2018, the document explains that the Bank's approach is designed to be explicitly counter cyclical: the severity of testing, and associated regulatory capital buffers, will therefore vary with the state of the financial cycle.

No comments: