The Bank of England published the results of its 2018 stress test of the UK banking system on 28 November 2018. UK Finance, in collaboration with PwC, is hosting a webinar to discuss the context and results of the annual stress test, what this means for firms and what the regulator expectations are for non-participant firms.
The Annual Concurrent Stress Test (ACST) examines the potential impact of a hypothetical adverse scenario on individual institutions that make up the banking system, and the system as a whole. This allows the UK regulators to assess banks’ resilience and make sure they have enough capital to withstand shocks, and to support the economy if a stress does materialise.
The Bank of England stress test of the largest UK banks and building societies informs policy making by the Financial Policy Committee and the Prudential Regulation Authority (PRA). Firms that are not part of this annual stress test must carry out their own stress testing. The PRA publishes a scenario every six months to serve as a guide for banks and building societies designing their own scenarios.
This FREE webinar is open to small to mid-tier domestic and international banks and financial institutions, including newly regulated firms. It will be relevant for all role levels and is designed to equip attendees to better understand regulatory expectations of the Bank of England’s annual stress test and what it means for them in their role. This will enable stress test practitioners to understand regulator expectations for stress testing under IFRS 9 and support CRO’s to identify what they need to convey to their Board.
- Overview of 2018 ACST (i.e. design)
- Summary of ACST results (i.e. main headlines)
- Examination of IFRS 9 expectations (i.e. difference between fully loaded and transitional basis)
- Perspectives on model risk management (PRA Supervisory Statement)
- What are the expectations for the base case for non-ACST participants
- What are the expectations for stress scenario development / parameterisation for non-ACST participants
David Kenmir, PwC and Stewart Cummins, PwC