British central bank cancels 2020 stress test for banks
Bank of England responds to coronavirus
As expected, the British banking regulator has dropped the stress test for the country’s major financial institutions because of the Corona crisis. This step should help to ensure that banks can focus on helping businesses and individuals with credit issues, the Bank of England (BoE), which also holds the banking supervision, announced in London on Friday.
A stress test always ties up a lot of people at the banks, who can now be deployed in the operational business. The currency guardians also stressed that last year’s stress test showed that domestic financial institutions are well prepared for crises. With this, the BoE is following the European bank supervision, which already last week cancelled its stress test. Reuters