Setting out the stress test scenarios, the Bank of England said: “As highlighted in recent financial stability reports, the United Kingdom’s large current account deficit creates a vulnerability to a reduction in foreign investor appetite for UK assets and increases in funding costs for real-economy borrowers.” The background against which it wants banks to test themselves includes “a sudden increase in the rate of return investors demand for holding sterling assets [which would mean higher interest rates on government bonds] and an associated fall in sterling”.Under its annual cyclical scenario, banks must show they can cope with a recession in the global economy and in the UK, interest rates peaking at 4%, and with house prices falling by a third.
Last year, RBS had to bolster its finances by about £2bn after failing the last stress test.
The vote by the UK last year to leave the EU triggered a sharp drop in the value of the pound.
In high school Masandi was the lead trumpeter in the school brass band.
Jazz fans can expect to hear Johnston’s voice at the “best she has ever sounded” as it has “improved with her confidence and her experience through the years and her range has increased with it, which is fantastic”, he said.
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