This week, the Bank of England published its 2017 bank stress test results and this revealed what scenarios major financial institutions could and would be able to withstand a turn in the economy. However, what does this mean for the fintech industry, if startups in the sector are reliant on banks in one way or another? The report explained that ‘the 2017 stress test shows the UK banking system is resilient to deep simultaneous recessions in the UK and global economies, large falls in asset prices and a separate stress of misconduct costs. This scale of loss, relative to their assets, would have wiped out the common equity capital base of the UK banking system ten years ago. The stress test shows these losses can now be absorbed within the buffers of capital banks have on top of their minimum requirements,’ the report read.

Source: Forbes November 30, 2017 20:26 UTC