- Joined
- 24 Sep 2005
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[url=http://business.timesonline.co.uk/article/0 said:...BANKS in the UK have been ordered by financial regulators to assess how they would cope in the event of house prices crashing by 40 per cent.
The instruction to include a housing slump scenario in their stress-testing models comes after the Financial Services Authority found that some banks were failing to include gloomy enough assumptions in their modelling.
The FSA said yesterday that an 'appropriate' benchmark was to assume property prices fell by 40 per cent and that 35 per cent of mortgages in default ended with homes being re-possessed...
Hmm .. An ill wind or minor draught blowing through that ever open door..
No probs, the Bank rate at 5% remains 1%'ish below the all time mean.
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Since Oct ... 1694 !!
Max 17.00% Ouch! felt some of that
Min 2.0000%
Mean 6.0224%
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