Bank's Tucker says stress tests will be more important

The Bank of England's Paul Tucker has said that bank stress tests will become profoundly important, and that they must incoporate international scenarios.

Tucker said that if you "have an overseas bank operating a massive branch that probably ought to be a subsidiary" and that if ever a central counterparty fails anywhere in the world, people will ask what on earth the bank was doing allowing for profit institutions to run them.

But many fear these stress tests are meaningless, as without progress to tackle the problem of Too Big To Fail, banks aren't allowed to collapse.

In his last appearance before the Treasury Select Committee, Tucker said that "we will not have a safe banking system until bankers go into work in the morning and say 'hell, my bank is overleveraged'".