Three of the eight major U.K. banks and building societies reviewed by regulators need to bolster their capital positions, but overall the banking system’s resiliency has improved, according to results of stress tests released this week by the Bank of England.
The eight major firms subject to the stress tests were Barclays Bank, Co-operative Bank, HSBC Bank, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland, Santander UK, and Standard Chartered. The exercise, according to the Bank of England, was intended to assess the banks’ ability to withstand a “very severe” housing shock and a sharp rise or snap back of interest rates.
