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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

UK banks face stress tests on impact of energy crisis defaults

Bank of England, Threadneedle Street London, street light
The Bank of England has run annual stress tests on the UK banking sector since 2013. Photograph: David Sillitoe/the Guardian

The UK’s largest banks will be tested on their ability to withstand a rise in defaults linked to sky-high energy prices, as part of the Bank of England’s delayed health check of the financial industry.

The Guardian understands that Threadneedle Street has crafted a new crisis scenario that will feature a deep economic recession, punctuated by soaring energy bills that could make it harder for some borrowers – particularly businesses – to afford loan repayments.

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