Edition: Global  
One News Page
“Probably the fastest-access news portal in the world”
> >

RBS Tumbles After Failing BoE's "Toughest Ever Stress Test"

Zero Hedge Wednesday, 30 November 2016
RBS Tumbles After Failing BoE's Toughest Ever Stress TestWhile the term 'stress test' has been applied almost mockingly to European and US banks in an effort to create confidence for investors (because if the government sees risks 'contained' then why worry), this morning's Bank of England stress test results highlighted *"capital inadequacies" for three major UK banks. *While Barclays and Standard Chartered fell short, it is *taxpayer-owned Royal Bank of Scotland that is slumping on a need to cut costs, raise capital, and sell assets*.

As Bloomberg reports, RBS has agreed to deepen cost cuts and sell additional assets to improve its resilience, the bank said in a separate statement.



Eight years after its 45.5 billion-pound ($56.6 billion) bailout from taxpayers, the Edinburgh-based lender still has work to do to bolster its financial strength. The test poses the latest setback in McEwan’s efforts to return the lender to profitability and full private ownership. The CEO has said he’ll unveil plans to further shrink the bank and reduce costs alongside full-year results next year.


*“They have fallen short of the hurdles, and they have some more work to do,”* Bank of England Deputy Governor Sam Woods said at a press conference in London. *RBS’s new capital plan is “fully credible, the PRA board looked at that carefully and reached that conclusion as well. We’ll hold them to delivery.”*



RBS is down over 12% from post-Trump euphoric highs, erasing all of the gains since the election


As Bloomberg reports, *some “capital inadequacies” were revealed at two other banks, **B*arclays Plc and Standard Chartered Plc, though neither was required to submit a revised capital plan, the BOE’s Prudential Regulation Authority said on Wednesday. 

So to sum up - 8 years after the financial crisis was 'fixed', with financial asset prices at record highs, 3 UK banks remain "undercapitalized," but do not worry as *The BOE’s Financial Policy Committee judged that no system-wide macroprudential action on bank capital was needed in response to the test.*
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 

You Might Like


Other recent news in Markets

Madonna: "I Have Thought An Awful Lot About Blowing Up The WHITE HOUSE"National Park Service BTFO: Cucked Agency Ordered to Cease Using Twitter After Mocking TRUMP INAUGURATION
AMERICA's Real 'Division' (Summarized In 100 Seconds)Fake News About "Love" For OBAMACARE?
Dunelm boss tells how BREXIT has hit homeware marketAn Alternative Perspective On Today's "Women's March"
"Open Your Ears" - POPULISM Is A Feature (Not A Bug) Of Democratic SocietyPepe Escobar: Here's How The TRUMP PRESIDENCY Will Play Out
Man Shot Outside University of WASHINGTON MILO Event, Gunman Spoke On Camera Minutes Before Incident (VIDEO)How Will Pfizer Inc. Fare Under PRESIDENT Trump?

Twitter

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+