Major UK lenders all pass Bank of England stress tests
Banks warned they would have to cut bonuses and dividends to weather a financial crisis
UK lenders are strong enough to withstand deep recessions both at home and abroad, but would struggle to stay afloat without slashing staff bonuses and shareholder payouts, the Bank of England has warned.
It is the third year in a row that all of the UK’s major high street banks have ‘passed’ the Bank’s annual financial sector health check, which determines whether individual banks could keep lending to households and businesses during a recession. It means that none of the lenders will be forced to raise billions of pounds in capital to strengthen their finances, despite coming into the tests with weaker underlying profits.Continue reading...