UK banks stress test – which banks performed best?

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What would happen in an economic worst case scenario? We look at the annual Bank of England stress test and how our biggest banks measured up.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

20 July 2023

Picture this. Inflation is rampant, peaking at 17%. Income and employment plummet. Property and asset prices take a plunge. Global recessions are in full swing and interest rates are standing high at 6%. Things are looking grim.

Horror, right?

That’s the extreme scenario the Bank of England gives several of the UK’s major banks during its annual stress test. The scenario used this year was even more extreme than the global financial crisis of 2007/08.

Banking stress tests are designed to evaluate a banks’ ability to withstand a series of shocks, while continuing lending activity and offering support to borrowers through it all.

This article isn’t personal advice. If you’re not sure an investment is right for you, ask for financial advice.