The Bank of England’s system-wide exploratory scenario (SWES) exercise explores how the UK financial system would respond to a market shock. It is the first exercise of its kind globally.
The SWES is a ‘system-wide’ exercise, incorporating a wide range of financial firms and business models. It therefore provides insights into the behaviour of different parts of the financial system under stress, as well as dynamics driven by their interactions and how these can affect outcomes in markets core to UK financial stability and the financial system as a whole.