Exclusive: Barclays tries to avoid shocking markets again

Tim Wallace
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BARCLAYS is considering changing the way it reports capital and leverage ratios to match regulators’ calculations more, City A.M. has learned, after the authorities shocked markets with fears over the bank’s stability.

The lender had been considered one of Britain’s safest major players, but this week was forced into a £5.8bn rights issue, as well as other steps to shore up its capital stance.

Regulators had earlier approved its capital calculations, but the Bank of England announced a review of its positions late last year.

After months of deliberation it declared Barclays needed to plug a £12.8bn capital hole.

As a result of that surprise the bank is looking at ways to report its leverage ratio more regularly, so investors can track its progress, and at ways to report capital levels in the way the prudential regulation authority (PRA) reported them.

The aim is to give more certainty to markets and avoid future shocks.

“Currently we don’t have enough information to monitor where banks stand on the PRA calculations – we don’t have info on conduct cost estimations, for example,” said Investec analyst Ian Gordon.