First BoE stress test uncovers capital shortfall

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The Bank of England's first ever stress test of the UK banking sector uncovered capital shortfalls at three major banks, the central bank revealed today.

Co-operative Bank, Royal Bank of Scotland and Lloyds were all asked to raise capital as a result of the exercise, although only Co-op failed the test outright.

The 'pass mark' was common equity Tier I totalling at least 4.5% of risk-weighted assets under the stressed scenario. Co-op's capital was "exhausted" under stress, the BoE said, falling

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