Co-op could fail bank test

Joseph Millis
THE Co-operative Bank yesterday admitted that it would come as “no surprise” if it failed a Bank of England stress test this month.

Britain’s main lenders have been tested on their ability to withstand a 35 per cent crash in house prices and surging interest rates.

“It will come as no surprise if the bank does not meet the… capital ratios,” chief executive Niall Booker said. “Almost 70 per cent of our customer assets are residential mort­gages and it has always been clear to ourselves… that we are vulnerable to these tests.”