United Kingdom : Financial Sector Assessment Program-The Bank of England's Stress Testing Framework-Technical Note

The Bank of England (BoE) has two mandates: a macroprudential mandate through the financial policy committee (FPC) and a microprudential mandate through the Prudential Regulation Authority (PRA). The stress testing program provides insights into both mandates. In October 2015, the BoE released a policy paper describing their current approach (BoE, 2015a), which guides the discussion in this Technical Note. The PRA's expectations on stress testing for capital planning are additionally set out in SS31/15.