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.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.