BoE official calls for UK asset managers to face bank-style stress tests

A Bank of England official has said asset managers, insurers and clearing houses in UK should be subject to the same stress tests faced by banks.

Alex Brazier, the newest member of the bank's Financial Policy Committee, said financial stability could be improved if stress tests are extended to other parts of the industry, according to the Financial Times. Currently, only banks in the UK are required to undergo stress tests, with the latest results revealing the Co-operative, RBS and Lloyds had fallen short of the BoE's requirements. But Brazier believes this is not enough. In a questionnaire to the Teasury's select committee, he wrote that his division's work on financial stability "should encompass asset management and other n...