Bank Of England Warn Of "Challenging" Outlook For Britain's Financial System
Wednesday, 30 November 2016 *Ulster Bank Parent RBS Fails Bank of England Stress Test*
"Royal Bank of Scotland (RBS)(RBS.L) will cut costs and sell assets to boost capital levels, it said on Wednesday after failing this year's Bank of England stress test, which warned of a *"challenging" outlook for Britain's financial system*.
The state-backed lender rushed out a statement following the announcement to say it would take a range of actions, including selling off bad loans and cutting costs to make up the capital shortfall identified by the tests of around 2 billion pounds.
The unexpected result underlines the litany of problems RBS is grappling with, which include a mounting legal bill for misconduct ahead of the 2008 financial crisis and difficulties selling off assets such as its Williams & Glyn banking business.
The lender said it had agreed a plan of action with the Prudential Regulation Authority, the Bank of England's enforcement arm, that should mean it does not have to tap markets to raise the money needed."
We warned of the RBS, Ulster Bank *‘£100 Billion Black Hole’* and the bail-in risk due to the ‘danger of failing' in June 2014 here
Bail-ins can now be used in the UK, EU, U.S. and G20 countries. Banks internationally and especially in Europe remain vulnerable.
After Cyprus, which country will be the next to suffer bail-ins? Will RBS and by extension Ulster Bank, be the first UK and Irish banks to be subject to bail-ins?
*Download Guide Here*
*Gold and Silver Bullion - News and Commentary*
*Gold prices firm as markets brace for OPEC meeting (Reuters.com)*
*- Peak Silver – Supply Deficits Mean Higher Prices*
*- Bail In Risk – €4 Trillion Banking System In Italy Poses Contagion Risk as Referendum Looms*
*- Gold Down 13.5% In 13 Days – Trump Bearish For Gold?*
*- War On Cash Just Got Real – India and Citibank In Australia*
*- Russia Gold Buying In October Is Biggest Monthly Allocation Since 1998*
*- Stocks, Bonds, Pension Funds “Will Be Wiped Out…” – Rickards*
*- Physical Gold Is A “Long-Term Position” as “Hedge Against Governments”*
*- Gold Sell Off On Fed Noise – “Interesting Times” To “Support Gold”*
*- Islamic Gold – Vital New Dynamic In Physical Gold Market*
*- Peak Gold Globally – “Bullish For Gold”*
*- Gold Price Should Go Higher On Global Risks and Trump – Capital Economics*
*- President Trump – Why Market Loves Him and Experts Wrong*
*- ‘Helicopter Money President’ Trump To Create Inflation and Gold Will Rise*
Royal Bank of Scotland says it will cut costs and sell loans to boost capital levels after failing this year's Bank of England stress test of seven British lenders. As Hayley Platt reports, Bank Governor Mark Carney also warned of a "challenging" outlook for Britain's financial system.