A Bank of England stress test has singled out two British institutions – the Royal Bank of Scotland and Standard Chartered – for not having enough capital strength.
The RBS did not meet its individual capital guidance. Standard Chartered didn’t meet its Tier 1 minimum capital requirement of six percent.
The Bank of England’s stress tests were devised to see whether Britain’s largest lenders would survive a financial shock.
All seven main banks passed the test. Both the RBS and Standard Chartered set out steps to deal with their particular problems and so neither bank was asked to submit a new capital plan.