LONDON – The Bank of England says the country’s seven biggest lenders have passed stress tests designed to see if they can withstand a slump in the global economy.
The annual check of the health of the financial institutions found that five of the seven participating institutions — Barclays, HSBC, Lloyds Banking Group, Santander UK, and Nationwide — showed no capital inadequacies.
The Royal Bank of Scotland Group and Standard Chartered did not meet their capital requirements. But the banking regulator is not asking either to submit a plan to raise new cash, as both institutions were already taking steps to strengthen their capital positions.
The Bank of England modeled how banks would react to, among other things, a sharp drop in Chinese economic growth.