Can UK Banks Pass the COVID-19 Stress Test, Updated

Dean and I have updated our banking report, and the new version is available here.

The new version gives figures updated to May 29th and is a little trimmed down. Its main highlight is a new Figure 1 which gives UK banks’ share prices since the start of 2007

UK Bank Share Prices Since the Beginning of 2007

and is based on Howard Mustoe’s lovely share price chart in his BBC report “Are Britain’s banks strong enough for coronavirus?

The exam question is: Explain how this Figure shows that UK banks are well capitalised.

Answers to Sam W, c/o Bank of England, Threadneedle Street, London EC2R 8AH.