The Bank of England has initiated its 2025 bank capital stress test for the seven largest and most systemic banks and building societies in the UK. The results, which will determine whether these banks have sufficient capital to withstand hypothetical economic shocks, are expected to be released in the fourth quarter of this year.
The test will evaluate the resilience of the UK banking system against severe simultaneous recessions in both the UK and global economies, significant declines in asset prices, rising global interest rates, and elevated levels of misconduct costs.
The participating banks and building societies include Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest Group, Santander UK, and Standard Chartered. These institutions account for 75% of lending to the real economy.