Royal Bank of Scotland has failed the latest Bank of England stress test and has had to issue a plan to improve its capital position, Bloomberg reports. Barclays and Standard Chartered also struggled, with "capital inadequacies" revealed at both banks. The test was "a very severe, synchronized UK and global economic recession, a congruent financial market shock and separate misconduct cost stress." The BOE required the banks to retain capital equivalent to 4.5 per cent of their risk-weighted assets in the stressed scenario. The BOE said that overall the UK banking system "is capitalised to support the real economy in a severe, broad and synchronized stress scenario."