System-wide exploratory scenario

Second system-wide exploratory scenario exercise

In December 2025 the Bank of England publicly launched its second system-wide exploratory scenario (SWES) exercise that will focus on developments in the private markets ecosystem. It will aim to improve our understanding of the behaviour of banks and non-bank financial institutions (NBFIs) active in private markets in response to a downturn, and whether these interactions can amplify stress across the financial system and pose risks to UK financial stability and the provision of finance to the UK corporate sector.

First system-wide exploratory scenario exercise timeline and final report

In June 2023 the Bank of England publicly launched its first system-wide exploratory scenario (SWES). The SWES aims to improve our understanding of the behaviours of banks and non-bank financial institutions during stressed financial market conditions and how those behaviours might interact to amplify shocks in UK financial markets that are core to UK financial stability.

In November 2023 the Bank launched Round 1 of the scenario phase of the SWES. During the scenario phase, we asked SWES participants to consider the impact of a hypothetical stress scenario, tell us how it would impact their business, and the actions they would take in response.

In June 2024 the Bank published an update on the SWES in the Bank’s Financial Stability Report, summarising observations from participants’ Round 1 responses. The Bank then ran a second round of the scenario phase with participants to evolve the analysis based on the behaviours and interactions observed in Round 1. 

In November 2024 the Bank published its system-wide exploratory scenario exercise final report.

Further information on Bank of England stress testing

For further information about the Bank of England’s stress testing, including our stress testing of UK banks, building societies, insurers and central counterparties, please see our stress testing page.