Co-Op, Lloyds, RBS Need to Strengthen Capital: BOE

The video discusses the results of stress tests conducted on UK banks, focusing on RBS, Lloyds, and the Co-op Bank. It highlights the performance of these banks under extreme economic scenarios, such as high interest rates and significant drops in house prices and stock markets. RBS and Lloyds managed to pass the tests, while the Co-op Bank struggled with a negative capital buffer. The video also explores the implications of these results for the UK financial system and the potential market debates in 2015.

What was the capital buffer requirement for banks to pass the stress test?

• 3.5%

• 6.5%

• 4.5%

• 5.5%

Which two banks had the largest exposure to the UK mortgage market?

• HSBC and Standard Chartered

• RBS and Lloyds

• Co-op and Barclays

• Santander and Nationwide

What is at the heart of the stress test scenarios?

• The banking sector

• The insurance industry

• The stock market

• The housing market

What was the Co-op bank's capital buffer status in the stress test?

• Negative 1.5%

• Positive 1.5%

• Negative 2.6%

• Positive 2.6%

What is a key topic of debate for Lloyds in 2015?

• Merging with another bank

• Resuming dividend payments

• Reducing risk-weighted assets

• Raising capital