Five of the seven banks tested – Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society and Santander UK – did not record any capital inadequacies, but RBS did not meet its individual capital guidance and Standard Chartered failed to meet Tier 1 minimum capital requirement.

However, because of action already undertaken by both banks, neither lender was ordered to submit a revised capital plan.

The stress test scenario played out various downturns in global economy, including a drop in the oil price to a low of $38 per barrel.

Ewen Stevenson, Chief Financial Officer at RBS, said: “We are pleased with the progress we have made relative to the 2014 stress test, but recognise we still have much to do to restore RBS to be a strong and resilient bank for our customers.”

Bill Winters, Group Chief Executive at Standard Chartered Bank, said: “We are pleased to have met the Prudential Regulation Authority (PRA) stress test thresholds through a significant and prolonged stress scenario.

“The results of the test demonstrate our resilience to a marked slowdown across the key markets in which we operate,” Bill said.

He added: “The test was conducted on our balance sheet as at the end of 2014. Since then we have made further significant progress in strengthening our capital position.

“We are operating at capital levels above current minimum regulatory requirements and have a number of additional levers at our disposal to further manage capital.”

Between the, the seven major lenders account for over 80% of PRA-regulated banks’ lending to the UK real economy.