LONDON: Britain’s seven top lenders have passed the Bank of England’s stress tests, the central bank said on Tuesday in its latest healthcheck on the sector.

The BoE’s Prudential Regulation Authority (PRA) watchdog concluded that the sector has adequate capital to survive a “severe” shock.

The PRA tested the impact of a sharp slowdown in Chinese economic growth, a shrinking eurozone economy, and slumping commodity prices with oil tumbling to $38 per barrel.

“The stress-test results suggest that the banking system is capitalised to support the real economy in a severe global stress scenario which adversely affects the United Kingdom,” the BoE said in a report.

The regulator said Barclays, HSBC, Lloyds, Nationwide and Santander UK did not show capital inadequacies in the BoE’s second round of stress tests.

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