BOE Says Stress Test Shows Banks Can Withstand Disorderly Brexit
- Barclays and RBS fall short, but don’t have to raise capital
- BOE raises countercyclical capital buffer rate to 1%
The City of London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The Bank of England said the U.K.’s biggest lenders emerged from its latest stress test with the strength to keep lending even during a “disorderly” Brexit.
Five of the seven banks passed the health check, while two -- Barclays Plc and Royal Bank of Scotland Group Plc -- fell below their systemic reference point, a higher threshold that reflects their global significance. Yet actions taken by the banks since end-2016 mean neither needs to bolster their capital, the BOE said on Tuesday.