Lenders can withstand coronavirus recession, says Bank of England’s Sam Woods

Industry News | 16/04/20

The Bank of England is testing commercial lenders to destruction to work out how deep a coronavirus recession they can withstand. Sam Woods, the deputy governor and chief executive of the Prudential Regulation Authority, said he was confident that high street banks were well-capitalised and would be able to lend into the real economy as the country opens up after the lockdown. However, the scale of the predicted recession was deeper than anything that the Bank had stress-tested the commercial banks against, so it wanted to work out their breaking point.

Source: The Times