Bank of England cancels bank stress tests due to Covid-19
More action from the Bank of England this morning, this time relating to banks.
It has cancelled this year’s stress tests and said it may be hard to implement new global capital rules at a time when banks are being asked to step up support of businesses and households in response to Covid-19.
Announcing the decision, the Bank said:
The recent 2019 stress test showed that the UK banking system was resilient to deep simultaneous recessions in the UK and global economies that are more severe overall than the global financial crisis, combined with large falls in asset prices and a separate stress of misconduct costs.