Co-op Bank fails doomsday stress test, RBS and Lloyds 'at risk'

The Co-operative Bank has failed the doomsday economic scenario test with RBS and Lloyd emerging as 'at risk' banks.

17:12 16 December 2014

The Bank of England’s doomsday economic scenario test has left three of Britain’s major banks “under stress”. While RBS and Lloyds will be at risk if there were an economic crisis, the Co-op’s bank failed the test all together.

No stranger to financial danger, the Co-op bank faced its own crisis in 2012 when its effort to buy 600 Lloyds Bank branches collapsed.

Meanwhile, RBS and Lloyds are expected to be "remain susceptible to a severe economic downturn", and are already taking action to strengthen their businesses.

However, it’s fairly good news over all as the stress test proved that banks and building societies are stronger than they were in 2013 when the last test was taken.

Mark Carney, the governor of the Bank of England, said: "This was a demanding test.

"The results show that the core of the banking system is significantly more resilient [and] that it has strength to continue to serve the real economy even in a severe stress."

The institution made it clear that the scenario described in the test is not something that it expects in the moment or in the near future.