RegionsBarclays to Reveal Plans for Meeting Tougher Capital Rules

Barclays to Reveal Plans for Meeting Tougher Capital Rules

Barclays said that it is to unveil plans to meet tougher UK capital adequacy rules, in response to reports that it plans a rights issue to raise funds of between £4bn and £5bn-plus.

The bank is seeking to strengthen its capital and balance sheet after UK financial regulator the Prudential Regulation Authority (PRA) reported last month that Barclays’ leverage ratio amounted to 2.5% after factoring in expected losses and other costs, against a required minimum of 3%. The cost of meeting the ratio is estimated at around £7bn.

Reports suggest that Barclays has lined up four book runners for its rights issue: Deutsche Bank, Credit Suisse, Citigroup and Bank of America Merrill Lynch (BofA Merrill).

Barclays shares fell after the bank responded to reports by confirming that it had been in discussions with the PRA “regarding its financial and capital management plans” and promised to update the market when it issues its first half interim results tomorrow.

According to a separate report in the Financial Times, the Serious Fraud Office (SFO) will receive a further £2m from the government to pursue its probe into Barclays’ emergency capital raising during the 2008 financial crisis.

Related Articles

Vayana Network hits $1bn in trade financing

India Vayana Network hits $1bn in trade financing

6d GTNews
LATAM economic activity hindered by political uncertainty

Latin America LATAM economic activity hindered by political uncertainty

2m Laura Noble
India-US trade corridor: Accelerating growth with reverse factoring

Deals & Markets India-US trade corridor: Accelerating growth with reverse factoring

4m Vinod Parmar
China’s regulatory changes stimulate international interest

Asia Pacific China’s regulatory changes stimulate international interest

5m Michael McCaw
“Destroy or democratise” – how Open Banking will impact connectivity

Banking “Destroy or democratise” – how Open Banking will impact connectivity

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Money market reforms: Navigating LVNAV, CNAV and VNAV

EEA Money market reforms: Navigating LVNAV, CNAV and VNAV

6m Victoria Beckett
The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

EEA The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

6m BELLIN