"The Bank is today announcing further details of an additional stress test, the 2017 exploratory stress test, in line with its stated stress testing approach. This will consider how the resilience of the UK banking system might evolve if recent headwinds to bank profitability persist and intensify," the bank said in a statement describing decisions made during a Financial Policy Committee (FPC) committee meeting earlier this month.
The test comes on top of a regular annual test which assesses the capital buffers of banks such as HSBC, Lloyds and Barclays in order to see if they can withstand cyclical economic shocks as well as be able to support the wider economy in tough conditions.
This year's additional test involves scenarios outside the usual financial cycle, including weak global growth and trade, lower cross-border banking activity and persisting low interest rates, according to the statement.
The bank noted subdued global growth, persistent uncertainty over international trade policies across the developed world, the United Kingdom's high private debt and uncertainty surrounding the final UK-EU post-Brexit trade deal as the risks facing the country's financial system.
The plans come just days before Prime Minister Theresa May's planned triggering of Brexit negotiations on Wednesday.
The Bank of England had warned ahead of last year's EU membership referendum that a withdrawal would pose the most significant risk to the country's economy. The central bank's warnings have been toned down since then, but it has kept record low interest rates and a massive stimulus program in an effort to buoy the economy.
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