Royal Bank of Scotland bolsters capital plan after failing stress test
London — The Royal Bank of Scotland (RBS) has bolstered its capital plan after failing multiple hurdles in the Bank of England’s toughest-ever stress test. Some "capital inadequacies" were revealed at two other banks, Barclays and Standard Chartered, but neither was required to submit a revised capital plan, the BOE’s prudential regulation authority (PRA) said on Wednesday. The test also covered HSBC Holdings, Lloyds Banking Group, Banco Santander’s British arm and Nationwide Building Society. The hurdle rate required all the banks to retain capital equivalent to 4.5% of their assets weighted by risk, plus pillar 2A — a requirement that varies depending on the specific risks for each bank — in the stressed scenario. "Based on RBS’s own assessment of its resilience identified during the stress-testing process, RBS has already updated its capital plan to incorporate further capital strengthening actions and this revised plan has been accepted by the PRA board," the PRA said. In a stat...
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