UK0,M<$b@mevgɦmJ8s =-bU#b5')byiDz)%2.&_NKpGtJ|QGdr:>Fj0rA ؞F&!| 4`,mz3[
In the News

Banks pass the latest stress test challenge!

The Bank of England has published their latest stress test results and even in the most pessimistic scenario, all of the main commercial banks were able to show that they have sufficient capital reserves to withstand a severe negative shock to the UK economy. 

There are worries about the impact of a disorderly Brexit on the UK financial system - but in the  worst case scenario that the Bank imagined for the tests including a 33% fall in house prices, a rise in interest rates from 0.5% to 4% within two years, and the unemployment rate rising to 9.5% from its current rate of 4.3% all of the banks came through with enough of a capital buffer.

Stress testing is now an important part of the system of financial regulation and management in the UK economy. Stress tests use tail-end risk events i.e. economic outcomes that lie well outside the mainstream forecasts. A failure to adequately insure against tail-end risk was a major reason behind the severity of the global financial crisis a decade ago.

Subscribe to email updates from the tutor2u Economics

Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Job board

Teacher of Business and Economics

The Holt School, Wokingham

Related Collections

Teaching Vacancies


Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u