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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

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Share Price: 202.70
Bid: 203.15
Ask: 203.20
Change: -0.95 (-0.47%)
Spread: 0.05 (0.025%)
Open: 202.65
High: 205.45
Low: 202.60
Prev. Close: 203.65
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UK FSA: UK Banks Pass Europe-Wide Stress Test

Fri, 23rd Jul 2010 17:48

By Patricia Kowsmann Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K.'s four banks that underwent a Europe-wide stress test on their balance sheets have passed, the country's financial regulator said late Friday. Barclays PLC (BCS), HSBC Holdings PLC (HBC), Royal Bank of Scotland Group PLC (RBS) and Lloyds Banking Group PLC (LYG) all recorded Tier 1 capital ratios above 9% for a deeply stressed scenario at Dec. 31, 2011, that among other things accounts for severe government bond shocks and a recessions this year and the next. The minimum necessary for banks to pass is a 6% Tier 1 ratio--a measure of a bank's capital adequacy, consisting of equity, preferred shares and retained earnings. Under the severe stressed scenario--whose probability of happening was estimated at less than 5%--HSBC would have a Tier 1 ratio of 10.2%, lower than the 10.8% ratio as at Dec. 31, 2009, but still far higher than the 6% minimum. EU regulators said the 6% figure is the same used in the U.S.' stress tests. Currently, European regulation requires banks to have a minimum 4% ratio. Barclays, meanwhile, would see its Tier 1 ratio rising to 13.7%, from 13%. RBS' would decline to 11.2% from 14.4% at Dec. 31, 2009. Lloyds would go to 9.2% from 9.6% as of the end of last year. Asia-focused Standard Chartered PLC (STAN.LN) wasn't tested, although a person familiar with the situation said the bank constantly performs its own evaluations. "The CEBS exercise shows that the U.K. banks are well placed to handle further periods of economic stress, as outlined in the macro economic parameters detailed by CEBS, should such stress develop," the FSA said in a statement. -By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com (END) Dow Jones Newswires July 23, 2010 12:48 ET (16:48 GMT)
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