atans1

HoHoFo: StanChart gets E grade in UK test

In Banks, Temasek on 02/12/2015 at 4:41 am

Royal Bank of Scotland and Standard Chartered were the weakest of Britain’s seven largest lenders in a Bank of England stress test.

For the second year, the central bank has subjected the UK’s biggest lenders to tests to measure whether they would survive a financial shock.

This time, it was assumed that oil had fallen to $38 a barrel and that the global economy had slumped.

No bank was ordered to come up with a new capital plan.

Out of the seven banks tested, RBS and Standard Chartered were found not to have enough capital strength, but both took steps to raise capital …

Standard Chartered’s chief executive Bill Winters said: “The results of the test demonstrate our resilience to a marked slowdown across the key markets in which we operate.

“The test was conducted on our balance sheet as at the end of 2014. Since then we have made further significant progress in strengthening our capital position.

“We are operating at capital levels above current minimum regulatory requirements and have a number of additional levers at our disposal to further manage capital.”

http://www.bbc.com/news/business-34972092

HoHoHo, next yr’s test will be harder still.

http://www.bbc.com/news/business-34972092

The UK’s banking sector is heavily (relatively) exposed to China much more so than other countries by a country mile. The exposure is concentrated between HSBC and Standard Chartered. Loan exposure to China represents around 30% of their loan books.

By compaeison our local banks’ exposure is “peanuts”.

Btw, Aberdeen Asset Mgt is a top 10 shareholder in both banks.

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