Source - SMW
Bank of England is to move forward with plans for additional stress tests in 2017 to gauge the ability of the country's top lenders to withstand a financial storm.

The central bank's Financial Policy Committee (FPC) said it would test UK's seven biggest banks and building societies on an extra round of scenarios to see how their balance sheets would perform in exceptional circumstances.

The tests, proposed October last year, would accompany the annual stress tests that measure how banks perform if the financial cycle quickly worsened.

Bank of England said the new "biennial exploratory scenario" was to complement these annual tests, and would deal with longer-term structural changes banks might face, including persistently low deflation and other factors that were not "neatly linked to the financial cycle".

Details of the new stress tests would be unveiled in March next year.