BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Draghi: Eurozone will decline without vital productivity growth

It’s productivity, stupid. European Central Bank president Mario Draghi has become the latest major policymaker to warn of the long-term economic damage posed by chronically low productivity growth, as he urged eurozone governments to take action to lift growth and stoke innovation. Speaking in Madrid on Wednesday, Mr Draghi noted that productivity rises in the […]

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Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

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Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

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Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

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Categorized | Banks

RBS falls 2% after failing BoE stress test

Posted on November 30, 2016

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests.

The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, worth at least £2bn.

Speaking on Wednesday, Mark Carney, governor of the BoE, praised RBS’s progress and welcomed plans to raise its capital levels by an “order of magnitude much bigger than the size of the shortfall” revealed in the stress tests.

Barclays and Standard Chartered also failed to meet some of the BoE’s minimum hurdles but will not be asked to submit any fresh plans to raise capital.

Here’s what bank shares are doing this morning:

  • RBS falls 2.3 per cent to 192p
  • Barclays shares rise 0.1 per cent to 214p
  • Standard Chartered down 0.5 per cent at 628p
  • Lloyds climbs 1.19 per cent to 58.5p
  • HSBC up 0.17 per cent to 632p

Read more: BoE stress tests – all you need to know