The stress tests created for banks by U.S. regulators after the 2008 financial crisis may prove their worth this week, providing a timely message on banks' hardiness in the midst of turbulence over last week's vote by Britain to leave the European Union. The Federal Reserve will release the second set of results from stress tests it has conducted annually on large banks since 2009 on Wednesday. "This is a real-world test that can help demonstrate the greater resiliency of banks' balance sheets and the benefits of de-risking that, while having hurt revenue this decade, should help incrementally in times such as this and show the relative strength of U.S. banks," said CLSA bank analyst Mike Mayo.
Britain's finance minister on Monday sought to calm markets after the country's shock vote to leave the EU, and insisted it would be not rushed into a break-up despite pressure from EU leaders. George Osborne said Britain's economy was "as strong as could be" to deal with the fallout of Thursday's momentous Brexit vote, which has already claimed the scalp of Prime Minister David Cameron and fuelled fears of a break-up of the United Kingdom. "Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength," he said, minutes before the opening of European stock markets.