The Bank of England today published the results of its 2016 concurrent stress test exercise for the UK banking system
30 November 2016
Commenting, David Strachan, Partner and Head of Deloitte’s EMEA Centre for Regulatory Strategy, said:
“The exercise is more akin to a health check than a fitness test, testing all dimensions of a bank’s capabilities to run a stress test, as well as its vital statistics. The FPC was disappointed by the rate of improvement and uneven progress in remedying deficiencies in stress testing capabilities.
“The £40bn assessment of stressed conduct risk is the same as last year. In effect, it represents an increase as some of the costs estimated in 2015 have crystallised over the past year. The real challenge for banks is that these estimates capture incurred but latent losses, which defy proactive risk management."
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