Harsher stress tests described in new FSA risk outlook

The UK Financial Services Authority (FSA) has outlined a new, more severe stress scenario for banks in its latest Financial Risk Outlook, published on Wednesday.

The regulator noted that its 2009 stress scenario had more or less come to pass. GDP actually fell slightly more than in the scenario, though the economy also recovered slightly faster. This left the situation at the end of the year roughly in line with the stress scenario, which envisaged a peak-to-trough drop of 6.9%.

The new stress s

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: