Press releases

Deloitte comments on BoE stress test scenarios 2017

27 March 2017

David Strachan, head of Deloitte’s EMEA Centre for Regulatory Strategy, said:

“No other central bank or supervisor has done anything like the exploratory scenario before. It is uncharted waters for both the BoE and banks.

"For both scenarios there is a very knotty problem for banks, namely to incorporate a number of regulatory, accounting and structural changes that will take place over the horizon of the forecasts.

“Beyond that, the two scenarios are actually quite different and complementary. Both are stress tests in the way that a Test match and a 20:20 match are both cricket.

"The exploratory scenario will necessitate bolder management actions over the longer term, which will potentially force banks to consider new, more strategic business model changes”.

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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