The latest Financial Stability Report says the UK financial system has become more resilient in line with regulatory requirements since the report in July (see FReD 3 July). It reports that stress-test results and banks’ capital plans together indicate that the banking system would have the capacity to maintain its core functions, notably lending capacity, in a stress scenario such as the one in the 2015 stress test for which the results are also available. The framework of capital requirements for UK banks has been published as a supplement to the report. It also announces that the Financial Policy Committee is actively considering the appropriate setting of the countercyclical capital buffer and that action has already been taken on both domestic and international levels to tackle cyber risks. (Source: BoE Financial Stability Report – No.38)