RBS must raise £2bn after failing Bank of England stress test

Royal Bank of Scotland will have to raise around £2 billion to boost its financial strength after failing the Bank of England's annual health check of the sector.

The lender, which is 73% owned by the taxpayer, emerged as the worst performer in the stress test and has drawn up a plan overnight to bolster its resilience in case of a financial crisis.

Barclays and Asian-focused player Standard Chartered also struggled in the test, but the Bank said their existing plans mean they do not have to take further action.

The Bank's most severe annual stress test so far gauged the resilience of seven UK lending giants - RBS, Lloyds Banking Group, HSBC, Barclays, Santander, Standard Chartered and Nationwide Building Society - against a global economic crisis and crashing house prices.

The Bank's Financial Policy Committee said in light of the findings and action taken by RBS, "the banking system is in aggregate capitalised to support the real economy in a severe, broad and synchronised stress scenario".

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

6 things we saw at the Final Fantasy XIV Fan Festival

Tweets reveal customers face half-hour wait to speak to bank

More RBS job cuts expected as banks set to reveal annual results

Theresa May agrees to meet Peugeot boss to discuss General Motors proposal


Today's Stories

Irish firms ‘have no plan’ for Brexit as UK return ruled out

Small Business Column Q&A: Dave Smyth from Cogs and Marvel

Dundalk firm Nova Leah is leading the field in safeguarding medical devices

Hans Rosling could bring subjects to life and shine light on complex issues

Lifestyle

Julia Jacklin, the Australian queen of folk, is coming to Ireland

Is it wrong parents must baptise a child to get them into a school?

One of Ireland’s most sought after music photographers, Christian Tierney, is going green

Vanquish the varroa mite with vapour

More From The Irish Examiner