Bank Stress Test - explain & league table

James_Bond_007

Good evening,
Please make your self comfortable and give a few moments of your time.

2 Questions please:-
1)When Banks do their "Stress Test" are they awarded a number (e.g. 9/10 = good) or percentage to indicate how they performed overall?
2) Is there a UK Bank Stress Test league table available, online, for all the banks indicating their name (or sort code)  and percentage figure?

Thanks for reading.
Have a good day.

Kind regards,
JB7

Barkin

https://www.bankofengland.co.uk/stress-testing/2023/bank-of-england-stress-testing-results

Enjoy! 

DullGreyGuy

James_Bond_007 said:

2 Questions please:-
1)When Banks do their "Stress Test" are they awarded a number (e.g. 9/10 = good) or percentage to indicate how they performed overall?
2) Is there a UK Bank Stress Test league table available, online, for all the banks indicating their name (or sort code)  and percentage figure?

1) No, banks regularly have to report their capital adequacy, have a minimum acceptable adequacy (aka hurdle rate) and a series of pre-planned actions they could take in the event of their capital adequacy starting to drop. In a stress test the PRA/BoE provide details of "an event". The banks have to model what would happen to their capital adequacy through the course of the event using the planned actions to counter the impact. They have to report how low the capital adequacy drops.

In principle anything above their hurdle rate is fine because your either not as impacted by the scenario or your management actions successfully manages the problem. It's slightly arguable if it's better to stay higher above it or drop less than your starting position .

2) Results are published online but its by bank, not branch, so you won't see sort codes etc