These two banks are most likely to crack in another financial crisis

Two banks showed up as weakest in the Bank of England stress test

Royal Bank of Scotland and Standard Chartered would be most likely to collapse in another financial crisis, according to the results of the Bank of England’s annual stress test.

In this year’s fictional scenario, the price of oil dropped to $38 a barrel, sparking a global financial meltdown.

Only RBS and Standard Chartered, of the seven banks tested, were found not to have enough capital strength to survive the crisis.

The two banks said they had made progress on their 2014 results, which the test was based on.

RBS chief financial officer Ewen Stevenson said: “We are pleased with the progress we have made relative to the 2014 stress test, but recognise we still have much to do to restore RBS to be a strong and resilient bank for our customers.”

Standard Chartered CEO Bill Winters said: “The results of the test demonstrate our resilience to a marked slowdown across the key markets in which we operate.

“The test was conducted on our balance sheet as at the end of 2014. Since then we have made further significant progress in strengthening our capital position.

“We are operating at capital levels above current minimum regulatory requirements and have a number of additional levers at our disposal to further manage capital.”

All the banks tested, HSBC, RBS, Lloyds, Barclays, Santander UK, Standard Chartered and Nationwide Building Society, were told to strengthen their position by putting aside a £10bn cushion of reserves called a “countercyclical capital buffer”.


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