Santander UK Does A good Job In The BoE Stress Tests

SantanderUK

According to the stress tests carried out by the Bank of England (BoE), the UK banking system could absorb £50 billion of losses with the capital they have in excess of the minimum requirements. This means they would be in a position to continue to provide the credit the economy might need in a very adverse situation.

The Banking Regulation Committee considers that the seven banks which participated have sufficient capital to comply with the standards of the test, amongst them Banco Santander’s UK subsidiary.

Along with Nationwide, Santander UK was the bank which did a better job in the test. In the negative scenario proposed by the BoE, the Spanish lender’s UK subsidiary would maintain a capital ratio of 9.7% of assets, clearly above the 7.6% bar it had to exceed.

The BoE says that this includes a drop of 50% in US stock prices, a rise in unemployment in the UK to 9.5%, a hike in interest rates to 4% or a decline of 33% in property prices in the country. So its conclusion is that the banks could face losses of up to £50 billion (55.942 billion euros) and continue to serve the real economy.

The vast majority of Santander UK’s assets correspond to mortgages. Under the BoE’s hypothesis, the biggest losses would occur in other positions with greater risk, like loans to real estate developers, consumer loans or portfolios of shares in the international markets. In total, the sector would suffer losses of £48.7 billion if that crisis happened.

The seven big UK banks which took the test are Santander UK, Royal Bank of Scotland, HSBC, Barclays, Lloyds, Nationwide and Standard Chartered.

Santander UK y el resto de grandes bancos superan los test de estrés del Banco de Inglaterra

Según apunta el BoE, se incluye una caída del 50% del precio de las acciones de Estados Unidos, un aumento del desempleo en Reino Unido al 9,5%, un incremento de los tipos de interés al 4% o una caída del 33% del precio de la vivienda en el país y, así, concluyó que las entidades podrían hacer frente a pérdidas de hasta 50.000 millones de libras (55.942 millones de euros) y continuar sirviendo a la economía real

Leer mas: http://www.europapress.es/economia/finanzas-00340/noticia-santander-uk-resto-grandes-bancos-superan-test-estres-banco-inglaterra-20171128122524.html

(c) 2015 Europa Press. Está expresamente prohibida la redistribución y la redifusión de este contenido sin su previo y expreso consentimiento.

Santander UK y el resto de grandes bancos superan los test de estrés del Banco de Inglaterra

Según apunta el BoE, se incluye una caída del 50% del precio de las acciones de Estados Unidos, un aumento del desempleo en Reino Unido al 9,5%, un incremento de los tipos de interés al 4% o una caída del 33% del precio de la vivienda en el país y, así, concluyó que las entidades podrían hacer frente a pérdidas de hasta 50.000 millones de libras (55.942 millones de euros) y continuar sirviendo a la economía real

Leer mas: http://www.europapress.es/economia/finanzas-00340/noticia-santander-uk-resto-grandes-bancos-superan-test-estres-banco-inglaterra-20171128122524.html

(c) 2015 Europa Press. Está expresamente prohibida la redistribución y la redifusión de este contenido sin su previo y expreso consentimiento.

 

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.