UK banks pass BoE stress tests
Dividend and AT1 bond coupon cuts needed to clear minimum requirements
All seven UK lenders in the Bank of England’s 2019 stress tests would have enough capital to weather a new financial crisis – though they would have to restrict shareholder giveaways to do so.
The aggregate Common Equity Tier 1 (CET1) capital ratio for the seven banks – Barclays, HSBC, Lloyds, Nationwide, RBS, Santander UK and Standard Chartered – fell to 9.9% under the BoE’s severe stress scenario, from an end-2018 starting level of 14.5%. The hurdle rate to pass was 7.5%.
But the minimum
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