The Bank of England (BoE) has published details of the 2024 supervisory stress test (SST) of UK central counterparties (CCPs). It will focus on two analytical components: the credit stress test and the credit reverse stress test. The clearing services of all three UK authorised CCPs (ICE Clear Europe Limited, LCH Limited, and LME Clear Limited) will be in scope of the exercise. They will be required to submit the relevant data using data templates and instructions provided privately to them. The BoE will then undertake the relevant analysis and intends to publish a results report in Q4 2024.

The Bank of England (BoE) has launched the 2025 Bank Capital Stress Test to assess the resilience of the UK banking system against severe economic shocks. The test involves the seven largest and most systemic UK banks and building societies, representing 75% of UK real economy lending. The stress scenario encompasses deep recessions in the UK and global economies, significant asset price declines, higher global interest rates, and elevated misconduct costs. It is designed as a 'tail risk' scenario to evaluate the banks' ability to withstand adverse conditions without amplifying shocks. The test aims to ensure that the participating banks can continue serving UK households and businesses during times of stress. The results, to be published in Q4 2025, will inform the setting of capital buffers for the UK banking system and individual banks, as well as provide insights into risks in the banking sector.

The Bank of England (BoE) has published its updated approach to stress testing the UK banking system from 2025 onwards. The approach combines regular stress testing for risks related to the financial cycle with the adaptability to explore different risks. It has three key components: a biennial bank capital stress test of systemic banks to inform capital buffers, supplementary assessments of cyclical risks in intervening years, and exploratory exercises for other risks like structural or emerging risks. The approach is designed to support the statutory objectives of the Financial Policy Committee (FPC) and the Prudential Regulation Authority (PRA).

The Prudential Regulation Authority (PRA) has published further information on the dynamic general insurance stress test (DyGIST) that it intends to run in 2025.

The European Securities and Markets Authority (ESMA) has published guidelines on stress test scenarios under the Money Markets Funds (MMF) Regulation. They apply to competent authorities, MMFs and managers of MMFs, and establish common reference parameters for the stress test scenarios to be included in the stress tests.

The European Securities and Markets Authority (ESMA) has published its latest guidelines on stress test scenarios under the Money Market Funds Regulation (Regulation (EU) 2017/1131) (EU MMF Regulation), Article 28, alongside official translations. The guidelines establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs.

The FCA has published a new webpage setting out the flexibility for firms in its interest rate ‘stress test’ rule and considering the effect of future rate rises on mortgage affordability.

The International Swaps and Derivatives Association (ISDA) has published a paper outlining why central counterparty (CCP) stress scenarios used for default fund sizing are not suitable for forward-looking initial margin (IM) simulators. ISDA notes that CCP stress scenarios typically involve a single-step transition from business-as-usual to stressed market conditions, which is sufficient for measuring absolute loss under stress. The policy paper details how CCP IM Models depend on the temporal progression of market stress events, identifying three key mechanisms through which shock trajectories affect margin levels. ISDA recommends implementing incremental scenario simulation for CCPs with path-dependent models due to the complex relationship between stress scenarios, value-at-risk models and additional tools.

The European Commission has launched a consultation as part of a stress test of the Birds and Habitats Directives (the EU Nature Directives) and Commission adoption planned for the fourth quarter of 2026. The initiative forms part of the Commission’s wider simplification agenda aimed at improving EU competitiveness while safeguarding economic, social and environmental objectives. The Commission stated that the stress test will examine opportunities to achieve the EU Nature Directives’ objectives more cost-effectively, identify potential areas for simplification and reduce unnecessary administrative burdens without changing the EU Nature Directives’ overall aims. The consultation seeks views on the implementation of the EU Nature Directives and is expected to be of particular interest to businesses, non-governmental organisations, trade unions, academic institutions, nature users, public authorities and environmental regulators. The consultation closes on 4 August 2026.

The Prudential Regulation Authority (PRA) had published the results of the 2025 Life Insurance Stress Test (LIST 2025), the first conducted under the Solvency UK regime implemented in 2024. The PRA will publish individual firm results for the core scenario on 24 November 2025.

The European Banking Authority (EBA) has published three technical documents—metadata, a data dictionary, and a guide for data exploitation—to support the automated analysis of its 2025 EU-wide stress test results. The guidance materials were released ahead of the full stress test data publication scheduled for 1 August 2025 at 18:00 CET.

The Health and Safety Executive (HSE) Working Minds campaign has encouraged British business owners, managers and employers to follow five steps to prevent and reduce stress in their workplace this stress awareness month. These five steps are: to reach out and have conversations with employees, recognise the signs and causes of stress, respond to risks identified, reflect on actions agreed and taken, and make it routine. All employers are required to prevent work related stress to support employee wellbeing in the workplace by law.