Britain’s major lenders have all passed the Bank of England’s latest round of stress tests.

The BoE’s latest Financial Stability report shows that the Barclays, HSBC, Lloyds Banking Group, NatWest, Santander and Nationwide have enough capital to withstand a deep global recession, large declines in financial markets and a rise in interest rates.

The banking system starts the test in a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 14.5% in aggregate and falls to a low point of 11.0% in the first year.

The aggregate Tier 1 leverage ratio starts at 5.3% and falls to a low point of 4.7% in the first year of the scenario.

The hypothetical stress specified a fall in house prices of 28%, a peak in the unemployment rate of 8.5% and a peak in Bank Base Rate of 8%.

At the low point, the Financial Policy Committee (FPC) says capital remains around £60bn above the sum of aggregate minima and systemic buffers.

The test indicates that the UK banking system “would be resilient to the severe but plausible scenario and would have the capacity to continue lending to credit worthy households and businesses throughout the stress”.

The report states: “All banks would also have remained above the sum of their regulatory minima and systemic risk buffers, which is the hurdle rate the Bank expects to return to using in future tests.”

The FPC reveals that as a result of the stress test no bank is required to strengthen its capital position.

Commenting on the findings, NatWest chief financial officer Katie Murray says: “This exercise has highlighted again the strength of NatWest Group’s balance sheet, delivering sustainable value creation and strong distributions for shareholders.”

“The results also reflect the continued strengthening of our balance sheet since the 2022/23 Stress Test, underpinning our ability to support our customers and the broader economy, including under a severe stress scenario.”

Meanwhile, Nationwide states: “The Bank calculated the Group’s minimum CET1 ratio as 14.5%, which reflected the continuation of distributions on all Tier 1 capital instruments and the application of strategic management actions.”

“This is comfortably above the Bank’s minimum requirement of 6.5%. The minimum UK leverage ratio was calculated as 4.8% after the application of strategic management actions, comfortably above the regulatory requirement of 3.25%.”

Barclays also published comment from the results. The bank says it continues to be “sufficiently capitalised for the duration of the stress scenario”.

“The test demonstrates Barclays’ continued robust and resilient balance sheet position, and the capital target range of 13-14% remains as before.”

Also commenting, Lloyds Banking Group notes it “comfortably passed the stress test and given this strong performance, the Group is not required to take any capital actions”.

The BoE calculated the group’s stressed CET1 ratio after the application of management actions as 10.9% and its stressed leverage ratio as 4.6%.

Lloyds says: “The Group significantly exceeded the capital and leverage minimum requirements of 5.9% and 3.3% respectively.”

Yesterday, the Bank of England revealed net borrowing of mortgage debt by individuals fell back to £4.3bn in October, after a rise to £5.2bn in September.