Bank of England Launches 2025 Stress Test for Major UK Banks Amid Global Economic Uncertainty

The Bank of England (BoE) initiated its 2025 bank capital stress test on Monday, targeting Britain's seven largest financial institutions. These include Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest Group, Santander UK, and Standard Chartered, collectively representing 75% of lending to the real economy. The test aims to evaluate the resilience of the UK banking system against severe economic downturns, including simultaneous recessions in the UK and globally, significant asset price declines, elevated global interest rates, and increased misconduct costs. Results are slated for release in the fourth quarter of this year.