BoE: Stress test shows banks can withstand a no-deal, no transition Brexit

Below are some key takeaways from the Bank of England's Financial Stability Report that includes the stress test results.

• All seven banks, building society have passed their 2018 stress test.
• Contingent capital used at Lloyds, Barclays to pass under full implementation of new IFRS 9 accounting rule.
• No bank needs to strengthen capital position as a result of the stress test.
• Test shows sector can withstand a no-deal, no transition Brexit and continue lending.
• Banks have trillion pounds in liquidity to withstand three-months' freeze in funding markets.
• Banks could withstand many months of no access to foreign currency market.
• Counter-cyclical capital buffer unchanged at 1 percent.
• Ready to cut counter-cyclical capital buffer "If economic stress were to materialise".
• EU should spell out its conditions for cross-border clearing of derivatives under a no-deal Brexit.