The Bank of England has launched its first sector-wide “stress test” to establish how big banks, insurers, clearing houses and investment funds collectively behave during extreme stresses in markets, it said on Monday.
“The launch of this exercise will provide valuable insight into the system-wide dynamics for banks and non-banks following a severe but plausible stress to financial markets,” BoE Deputy Governor Jon Cunliffe said on a statement.
(Reporting by Huw Jones; Editing by David Goodman)
