|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
26th of July 2011
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

FSA to introduce tougher stress tests for banks

Bookmark and Share

by Kay Mitchell
”FSA

City watchdog, the Financial Services Authority (FSA), has today announced banks will face stricter stress testing to ensure they can survive a further 4 years of falling economic growth and a 13.3% unemployment rate.

Stress tests were introduced following the financial crisis to ensure that banks had sufficient capital to allow them to continue operating through dire economic conditions.

The new, tougher regime will test if a bank can withstand a peak-to-trough fall in GDP of 8.1%, compared with last year’s measure of 6.9%.

Furthermore, they will be tested to see if they can survive an unemployment rate of 13.3% - nearly double the current rate of 7.8%

However, the new stress test is more positive on residential property prices, anticipating a fall of 23%, against last year’s 50%.

Discuss this in the Finance Markets forums

Story link: FSA to introduce tougher stress tests for banks



News posted: March 10, 2010

Financial Services:





Related financial stories to: FSA to introduce tougher stress tests for banks:
Previous: «
Next: Japanese Q4 economic growth figures revised downwards »

Visited 1723 times, 6 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , , , , , stricter, survive,

 

Banking News feed Banking News

Economy News feed Economy News

All Financial News feed All Financial News