Britain’s banks are facing a real-life stress test
The way the response to Covid-19 is developing could yet tell us how the British economy can cope, writes James Moore
In 2014, the Bank of England’s economic Stephen Kings started dreaming up dastardly economic horrors for Britain’s banks. They called this “stress testing”.
With a real-life one unfolding before our eyes, we could be about to see just how effective the regime has been when it comes to making sure the industry can cope with a shock.
The idea, and it was a very good one, emerged from the toxic sludge of the financial crisis at a time when memories were still fresh and people were crying “never again”.
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