Bank of England to consult major private credit groups on stress test
Landmark exercise to test resilience of $16tn finance market outside banking
Landmark exercise to test resilience of $16tn finance market outside banking

US private capital groups to take part in Bank of England review amid concerns over systemic risks

Regulators gain more flexibility if ‘bail-in’ process is required in response to a crisis

The sector remains untested in a severe or prolonged economic downturn

City minister welcomes move to take lenders off the ‘naughty step’

Discussions will include American and international insurance watchdogs

Deputy governor says initial plans may have been ‘overly conservative’ and central bank ‘looking very hard’ at alternatives