Bank of England still undecided over stress test scenarios

Bank of England

The details of the planned stress tests for major UK banks will be heavily dependent on regulatory judgement, with the Prudential Regulation Authority (PRA) – the Bank of England's macroprudential arm – still undecided on how to construct the stress scenarios that will be used.

Addressing a seminar at the London School of Economics, Vasileios Madouros, senior manager in the Bank's banking system division, said that the severity of the shocks included in the scenarios could vary over time.


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