UK banks asked to stress-test their systems against ‘plausible’ global recession (opens original article in a new tab)

UK banks are stress-testing their systems against a hypothetical global recession scenario, including supply chain disruptions and high inflation, to identify risks in the private credit market.

• UK banks and 46 financial firms are stress-testing against a hypothetical global recession scenario
• The scenario includes supply chain disruptions, high energy prices, and a 7% inflation and unemployment rate
• The Bank of England aims to identify risks in the less-regulated private credit market