The Bank of England has published the key elements of its 2016 stress test of the UK banking system, which has been designed under the new annual cyclical scenario (ACS) framework. The scenario reflects the judgement of the Financial Policy Committee (FPC) and the PRA board that, overall, domestic risks to the UK banking system have risen beyond their subdued levels during the immediate post-crisis period but are not yet elevated. In addition, global risks are judged to be heightened, particularly in China and some other emerging market economies. The stress test results will be used by the FPC and the PRA as part of their respective evaluations of the capital adequacy of individual institutions and the resilience of the banking system as a whole.