Mark Carney says it is preferrable that firms know as much as possible as early as possible about the end point of Brexit - and how we are going to reach that point.

He says it's "early days" and the point at which firms would need to put their plans into action is a "long way off". 

Kathleen Brooks of City Index sums up the stress tests thus:

•  RBS is still the weakest link in the UK banking system

• The results aren’t as bad as they could have been, and the UK banking system looks in good shape, especially compared to its European counterparts (here’s looking at you, Deutsche Bank).

For the first time next year the Bank will conduct an annual cyclical stress test as it did this year - as well as a biannual exploratory test. It will focus more on "slow burn risks".

Mark Carney, the Bank of England governor, is holding a press conference about the stress tests and the financial stability report.

He says the combined Tier 1 capital ratio of UK banks - a key measure of their financial strength - is now 13.5%. That is higher than the level of total capital required by the Bank's Financial Policy Committee.

The stress test is the first under the Bank's new "cyclical" scenario that imagined a combined UK and global recession. 

RBS has a higher sensitivity than other banks in the UK to the types of stresses under scrutiny in this test.

UK household secured debt performed very well. Lloyds, Nationwide and Santander did well, showing the strong performance of UK mortgage-based banks

RBS has more of the risker categories on its books, exposing it to more risk. And the less said about the conduct fines, well, the better.

This was a tougher stress scenario than in previous years. It combined the severity of the UK scenario in 2014 and added it to the 2015 picture in Europe.

Under the test, Chinese GDP is seen to fall in absolute terms.

The Bank of England then threw in some other challenges for good measure. These included ramping up the amounts banks might need to pay in fines for misconduct.

As a result, the impact of the test on banks' capital ratios is more severe.

Economics editor Kamal Ahmed tweets:

Image source, Getty Images

As a result of the stress tests, Royal Bank of Scotland, external plans to raise an additional £2bn to bolster its cash reserves.

The bank has also reduced its "risky" assets by £10.4bn, or 21%, to £38.6bn.

Image source, Getty Images

While Barclays missed one of the core hurdles under the test, its existing plan to strengthen its capital position means it does not need to take new action.

Standard Chartered failed to meet the so-called Tier 1 minimum capital requirement. However, the Bank of England is happy with steps already being taken to improve this and has not asked for a new plan to be submitted.

RBS failed to meet the two key capital target levels under the Bank of England’s tough new stress test scenario.

The bank carried out the stress test work between March and June. It realised its capital was not up to scratch and has now submitted a new plan, which was accepted by the Bank of England's Prudential Regulation Authority yesterday.

Barclays and Standard Chartered also struggled under the test, which incorporated a synchronised UK and global recession, as well as potential misconduct costs.

HSBC, Lloyds, Nationwide and Santander passed the test outright.

Image source, Getty Images

Ewen Stevenson, RBS chief financial officer, said: "We are committed to creating a stronger, simpler and safer bank for our customers and shareholders. We have taken further important steps in 2016 to enhance our capital strength, but we recognise that we have more to do to restore the bank's stress resilience including resolving outstanding legacy issues."

Royal Bank of Scotland has missed key hurdles in a Bank of England stress test, forcing it to draw up new plans in case of a financial crisis.

The toughest stress test yet measured the UK’s seven biggest lenders against a global economic crash.

RBS performed the worst and was forced to draw up a new capital plan, which has been accepted.

Barclays also fell short of one hurdle, but its existing capital plan was deemed to be acceptable by the Bank.

Today Programme
BBC Radio 4

Should we trust the health claims being put forward by Philip Morris International about its Iqos heated tobacco product?

Deborah Arnott, chief executive of Action on Smoking and Health, says: "Philip Morris is a tobacco company. They are still making most of their profits from selling cigarettes. On current trends, smoking will kill 1 billion people in the 21st century, most in poor countries. If Philip Morris really want to see the end of smoking they have to stop promoting smoking to new young smokers around the world."

In the UK she says "smoking is coming to an end" as a smaller proportion of young people take it up. She says products such as the iQos need regulating as tobacco, adding: "We still need to be very cautious about what the industry's up to."

Today Programme
BBC Radio 4

Image source, PMI

A new kind of cigarette goes on sale in the UK today, and its maker claims it does less harm than the type you stick in your mouth and set fire to.

Tobacco giant Philip Morris International says it would like to stop making conventional cigarettes altogether. The firm has spent $2bn on its product, the iQos, which heats tobacco rather than burning it.

"The product is not risk-free, but in comparison to continuing to smoke cigarettes, it's likely to present less harm," says Dr Moira Gilchrist, director of scientific engagement at Philip Morris.

Would she recommend her children use it? "My children - I'm very clear about the health effects of smoking, I know it, I'm a scientist, so I encourage them and continue to encourage them not to take up any product. I think that's the best thing that they should do."

Andre Calantzopoulos, chief executive of Philip Morris, admits that there is "some deficit of trust" when it comes to tobacco firms being open about the health effects of smoking.

"Consumers chose to use cigarettes. I don't think Philip Morris has invented cigarettes. So, I think for us, is to offer consumers the best product we can in a category that we all know is addictive and causes harm."

Andreas Illmer
Business reporter in Singapore

Image source, AFP

Asian shares have seen a muted reaction to the strong US growth data out yesterday. 

Japan's Nikkei 225 is flat despite government figures showing higher housing prices and a rebound in consumer confidence.

In China, the Shanghai Composite is down by 1.1%, while in Hong Kong, the Hang Seng did pick up on the strong US data and moved higher by 0.3% higher. 

Australia's ASX 200 closed 0.3% lower, while the Kospi in South Korea is up by 0.4%.

Image source, Camelot

A quick spot of non-financial news: Camelot, the National Lottery operator, says it became aware of "suspicious activity" on a small number of players' online accounts on Monday.

It stresses that there has been "no unauthorised access to core National Lottery systems or any of our databases, which would affect National Lottery draws or payment of prizes". 

"Of our 9.5 million registered online players, we believe that around 26,500 players’ accounts were accessed. A much smaller number - fewer than 50 - have had some activity take place within the account since it was accessed."

Camelot has imposed a compulsory password reset on the accounts affected and is contacting them.

Image source, Getty Images

Analysts at Autonomous say the banks will probably beat the lowest measures of strength required to pass the Bank's health check.

However, they reckon that RBS and Barclays risk a "soft fail" of tougher thresholds set for lenders deemed to be integral to the global banking system.

The Autonomous analysts also think that HSBC and Standard Chartered could be affected by a Chinese recession scenario.

Image source, Getty Images

This is the third year that the Bank has conducted this exercise and it is expected to be the most severe yet. Each lender will be assessed on whether it could withstand a global crisis similar to that in 2008. 

The five-year doomsday scenario includes oil prices slumping to $20 a barrel, house prices tanking by a third, rising UK unemployment and a 4.3% drop in the UK's economic output. 

None of the seven lenders are expected to fail the stress tests, but RBS and Barclays are seen as being potentially the weakest. Last year it was the part-nationalised RBS and Asia-focused Standard Chartered that came closest to failing.

Chris Johnston
Business reporter

Image source, Getty Images

Good morning and welcome to a big day for the financial sector. The Bank of England will announce the results of its annual check on the health of Britain's biggest banks after testing them against a global economic crisis and crashing house prices. 

Its annual "stress test" gauges the financial strength and resilience of the UK's seven major lenders: Lloyds Banking Group, HSBC, Barclays, Royal Bank of Scotland, Santander, Standard Chartered and Nationwide Building Society.

My colleague Catherine Snowdon has been locked up in the bowels of the Bank of England to pore over the documents and won't be released for another hour. But once the wifi is turned on, she'll bring us all the news live and direct from the City.