Nationwide, which employs 6,500 people in Swindon, has been given a 100 per cent pass rate in the Bank of England stress test.

This confirms its own analysis that it is able to withstand a severe economic downturn and has confirmed Nationwide is not required to submit a revised capital plan or take additional actions as a result of the stress test, which has demonstrated the resilience and financial strength of its business.

The Building Societies Act requires Nationwide to maintain a minimum of 75 per cent of its balance sheet secured against residential property and therefore a stress of this nature would inevitably have a significant impact, particularly as it is one of the largest mortgage lenders in the UK.

The results of the test confirm that under these extreme stress conditions, Nationwide would remain profitable.

Since the test, the group has continued to strengthen its capital position as a result of strong profitability and de-leverage of certain assets. It estimates that after allowing for this subsequent improvement in its capital strength, its minimum stressed CET1 ratio would increase from 6.7 per cent to 8.1 per cent.

Nationwide said it supports the financial stability objectives of the Financial Policy Committee and the Bank of England.