...January 20, 2021 LONDON (S&P Global Ratings) Jan. 20, 2021--S&P Global Ratings believes that publication of the Bank of England's (BoE's) 2021 solvency stress test results will help inform investors and other market participants of the resilience of the U.K. banking system while the U.K. economy remains in the midst of a real-life stress scenario. The stress test, for which details of the scenario were published today, involves the eight largest U.K. banking groups, which account for around 75% of lending to the real U.K. economy. While the BOE won't publish final results until the fourth quarter, it has unveiled a staggered timetable, including an earlier than normal submission by participating banks of projections for credit impairments and credit risk-weighted assets. This will enable desktop analysis by the BoE in the first half of the year. Moreover, the staggered information will enable the BoE's Financial Policy Committee (FPC), which focuses on systemic risk and the resilience of...
