Bank of England stress tests to include feared global crash

Scenarios to gauge UK banks' ability to weather economic shocks include a dramatic slowdown in China and prolonged period of global deflation

The Bank of England is to impose a series of tests on large UK banks to establish whether they are able to withstand a dramatic slowdown in China, a contraction in the eurozone, the worst deflation since the 1930s or a fall in UK interest rates to zero.

The Co-operative bank - which failed last year's tests - is no longer included in the annual assessments of the industry's financial strength as it is too small, leaving six banks and the Nationwide building society to be tested.

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