UK banking regulator gives green light to Barclays share sale plan

Commenting on Barclays’s planned £5bn share sale to fill its capital hole, UK banking regulator the Prudential Regulation Authority has said it agrees and welcomes the plan.

According to a spokesperson for the Bank of England:

Following constructive discussions, the PRA has agreed and welcomes Barclays capital plan, announced today. We have considered all elements of the plan, including new capital issuance, planned dividends and management actions to be taken and, based on Barclays' projections, conclude that it is a credible plan to meet a leverage ratio of 3 per cent, after adjustments, by June 2014 without cutting back on lending to the real economy.

Barclays will announce its plans alongside its interim results, released today.