BoE publishes 2022 Stress Test scenario

The BoE has published the scenario it will be stress-testing banks against now it is returning to the pre-pandemic annual stress-test framework. The test will focus on deep simultaneous recessions in UK and global economies, large falls in asset prices and higher global interest rates, and a separate stress of misconduct costs. For the first time, the 2022 exercise will assess the ring-fenced subgroups of the participating banks on a standalone basis where they differ materially from the group as a whole.

It will publish the results in summer 2023.