RBS / Standard Chartered escape having to raise additional capital

Bank Of England Building

Standard Chartered and Royal Bank of Scotland escaped having to raise additional capital in the Bank of England’s latest stress test, even though they fell short in some parts of the assessment.

Bloomberg News reports that RBS failed to meet its individual-capital guidance in the examination, based on end-2014 data, the BOE’s Prudential Regulation Authority said in a statement on Tuesday. Standard Chartered did not meet its Tier 1 minimum capital ratio, a measure of financial strength.

The BOE said Standard Chartered’s “recent strategy review and the associated steps taken to strengthen its capital position” meant it didn’t need to submit a new capital plan. RBS was also let off based on previous capital raising and debt issuance plans.

This was the BOE’s second public stress test, as it seeks to reinforce investor confidence in financial firms seven years after the global banking crisis. 

To access the complete Bloomberg News article hit the link below:

Standard Chartered, RBS Escape Capital Raising in Stress Test

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