Quick Guide What are financial stress tests and why do we need them? Show Hide Stress tests are used to assess the financial strength of a bank. They are based on hypothetical scenarios but designed with historic events in mind, such as the Black Monday stock market crash in 1987 or the banking crisis of 2008. In 2014, the Bank of England began annual stress tests on the biggest lenders, publishing the scenarios that would be used and publishing the results. On Tuesday, it is expected to become clearer how the £30bn is distributed among lenders and which lenders the Bank of England has demanded hold extra capital against these loans.

Source: The Guardian November 26, 2017 12:39 UTC