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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."

End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

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