BoE has published a Discussion Paper on a framework for stress testing the UK banking system. As well as common scenarios, the proposed framework would also explore the impact of bespoke scenarios designed by individual banks, which itself aims to increase banks' own ability to identify risks. Remedial actions would depend on policymakers' judgement, rather than mechanistic responses. Stress tests would be run annually and their outcomes would be publicised. BoE is also considering a separate regime for central counterparties. (Source: A Framework for Stress Testing the UK Banking System)
