BOE Initiative aims to ensure that institutions are prepared to face adverse situations that can impact the economy
Banco da England (Boe) has announced new guidelines for stress testing in the banking sector, scheduled for results for the last quarter of 2025. This initiative will be attended by the seven main banks, which are Barclays, HSBC, Lloyds, Nationwide, Natwest, Santander of the United Kingdom and Standard Chartered. Together, these institutions account for 75% of loans to the British economy. Stress tests will be elaborated based on scenarios that cover various aspects of the economy.
Among the factors considered are the recession of global GDP, the slowdown in international trade, the increase in inflation and the devaluation of financial assets. These elements are crucial to assess the resilience of the banking system in the face of possible crises. The Boe initiative aims to ensure that banks are prepared to face adverse situations that can impact the economy.
Through these tests, the institution seeks to identify vulnerabilities and promote more effective risk management among the country’s main financial institutions.
*Report produced with the aid of AI
Posted by Fernando Dias
