Big lenders face being named and shamed by the Bank of England if they fail to improve the models used in annual stress tests.
The central bank could also force lenders it believes have inadequate systems for assessing risk to hold more capital.
Its warning about the quality of stress test assessments was made on Wednesday as part of its Financial Stability Report. All seven lenders had enough capital to pass their latest stress tests but the Bank wants to improve the quality of their work and force banks to make their models more robust.
