FSA toughens up bank capital stress test

11 Mar 2010

The UK Financial Services Authority has updated its stress tests for banks, requiring them to hold capital that could withstand a double-dip recession resulting in a peak to trough GDP fall of 8.1%.

In its Financial Risk Outlook for 2010, the FSA revealed that it was toughening up the stress tests under which it requires banks to maintain a 4% core tier one capital ratio for a five year period in a severe economic downturn. Its updated parameters are harsher in ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.