BoE to focus on EM exposure in next bank stress tests

The Bank of England is planning to put the emerging market exposure of UK banks under scrutiny in the next round of stress tests.

Governor Mark Carney (pictured) yesterday warned emerging economies may face a "sharper adjustment" than previously expected as geopolitical and economic risks mount. At a press conference discussing the Bank's financial stability report, the Governor said: "You can expect we will look towards some of those global risks much more closely - they will figure more prominently. "Given the footprint of some of our largest banks in Asia and given the risk profile in Asia, quite frankly you can expect that would be a component of it," he added, according to the FT. The announcement comes ...