Bank of England says lenders are resilient but rising interest rates are weighing on homes and firms.
UK banks are strong enough to withstand a fresh economic crisis, according to the Bank of England.
In its stress test of the financial system, the Bank said the UK's eight largest lenders could survive a worst case scenario of plunging house prices, a deep recession and soaring inflation.
It also said that the country has "so far been resilient" to rapidly rising interest rates.
But some households and firms "may struggle with repayments" on loans.