Bank of England (BoE) is set to further toughen annual stress tests and also assess the resilience of the country’s banking system against cyber-attacks.
This year stress test, scheduled to happen in the middle of this year, will test how the banks perform against a potential cyber-attack, reported Reuters. However, Bank of England will not publish individual results.
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The stated objective of the test is to build resilience among the lenders so that they can recover from such attacks within hours and complete all customer payments within the day.
BoE bank stress tests:
The 2019 annual cyclical scenario tests will also assess the resilience of the banks against deep simultaneous recessions in the UK and global economies, a financial market stress, and misconducts.
The stress test will simulate the banks against a more severe situation than the financial crisis.
The Financial Policy Committee (FPC) and Prudential Regulation Committee (PRC) have determined the stress scenario as appropriate.
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By GlobalDataAdditionally, necessary adjustments to the economic and financial market prices and activities were also made compared to the 2018 exercise.
The results of the tests will be published in the fourth quarter of this year.
In November last year, the European Banking Authority conducted an EU wide stress test. British lenders Barclays and Lloyd were among the worst performers in the test, though every bank passed the minimum threshold mark.
