Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests.
RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s equity tier one ratio — a measure of capital to risk-weighted assets that is the main benchmark of banking strength — fell from 15.5 per cent to 5.9 per cent after management actions but before AT1 conversion. This came in below a 6.6 per cent hurdle rate and a 7.3 per cent “systemic reference point” set by the bank.
Following the results, RBS has submitted plans to bolster its capital position by at least £2bn – a move that was welcomed by BoE Mark Carney this morning.
Read more: BoE stress tests – all you need to know