The Bank of England has increased the difficulty of its stress tests for British banks.
Editor’s Remarks: Mark Carney is not taking any chances that banks in the UK will not be able to handle the volatility that Brexit will generate. Therefore, a review to be conducted every two years will evaluate how banks can handle scenarios falling outside of the financial cycle. The institution did, however, state that tests will only get tougher in areas that pose a realistic threat going forward. Mark Carney also wants to ensure that banks in the UK do not need to stop lending if the negotiations go awry between Britain and the EU, a scenario which could seriously hurt other EU nations.
What to watch: BoE, Mark Carney, Theresa May, GBP/USD, EUR/GBP