Investor Confidence in Banking Stocks Improves

Stress test results strengthen investor confidence toward the UK banking space, which has been under pressure due to the uncertainty and impact of Brexit

Derya Guzel 18 January, 2018 | 9:28AM
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The Bank of England

The Bank of England published its 2017 stress test results for the UK banks in November. The Bank of England started testing banks’ capital positions in 2014, and this is the first time since then that no bank has needed to strengthen its capital, which came as a relief for some banks.

This is especially the case for Royal Bank of Scotland (RBS), which had failed the test year after year. In this year’s stress testing, the Bank of England used an economic scenario that was more severe than the global financial crisis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC198.34 GBX-0.56Rating
HSBC Holdings PLC440.20 GBX-1.01Rating
Lloyds Banking Group PLC49.78 GBX1.66Rating
Nationwide Building Society190.00 GBP0.00
NatWest Group PLC231.30 GBX-0.73Rating
Standard Chartered PLC489.60 GBX-0.43Rating

About Author

Derya Guzel  is an Equity Analyst for Morningstar