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Wednesday 30 November 2016 7:44 am

This is how UK banks have responded to the Bank of England stress test results

By: Caitlin Morrison

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The results of the Bank of England's latest stress tests on the UK's major lenders are out – and Royal Bank of Scotland has been handed the wooden spoon.

RBS failed on all measures, while Barclays and Standard Chartered both missed out on one measure. The other banks being tested were Santander UK, Lloyds Banking Group, HSBC and Nationwide.

Here's how some of the banks responded: 

RBS

Chief financial officer Ewen Stevenson said:

We are committed to creating a stronger, simpler and safer bank for our customers and shareholders. We have taken further important steps in 2016 to enhance our capital strength, but we recognise that we have more to do to restore the bank's stress resilience including resolving outstanding legacy issues.

Barclays

The bank said that over the course of 2016 it has made strong progress with the accelerated rundown of non-core and reduced its stake in Barclays Africa Group Limited as it moves towards regulatory deconsolidation, which together with organic capital ratio accretion has strengthened and de-risked the group. "These factors would have reduced the impact of the 2016 stress tests," the lender said.

Standard Chartered

The lender said in a statement: 

The group has a strong and liquid balance sheet and the results of the stress test demonstrate its resilience to a severe global stress scenario.

Lloyds

"Despite the more severe stress on the UK economy, the group comfortably exceeds the higher capital and leverage thresholds set out for the purpose of the stress test; therefore, it is not required to take any capital action as a result of this stress test," Lloyds stated.

"This re-affirms the strong capital and balance sheet position of the group."​

HSBC

The lender, which passed the test, noted that it could have more tricks up its sleeve to dig itself out of a rough economic patch other than those consider by the Bank of England testing.

"Under adverse economic circumstances, we would in practice consider a variety of management actions depending on the particular prevailing circumstances," a statement for the bank read. "Our intention, as evidenced by past actions, is to maintain a conservative and prudent stance on capital management."

Santander UK

The bank remarked that it had passed the hurdles set by the test, adding: "As a result of the exercise the Bank of England does not require Santander UK to undertake any actions."

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