Prudential Regulation Authority announced the completion of capital shortfall exercise with eight firms, Barclays, Co-operative Bank, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland, Santander UK, and Standard Chartered.
The PRA's assessment was that, at the end of 2012, Barclays, Co-operative Bank, LBG, Nationwide and RBS fell short of this standard. They had an aggregate capital shortfall relative to this standard of 27.1 billion pounds.
In response, Royal Bank of Scotland Group (RBS, RBS.L) stated that it continues to target a 'fully loaded' Basel 3 CT1 ratio of around 9 percent by year end 2013, after including the provision of capital to fund anticipated future loan growth.
In a separate press release, Barclays (BCS, BARC.L)said it is confident that it will exceed this 7 percent PRA-calculated ratio organically by the end of 2013 through its capital generative businesses and continued progress in executing its Transform programme, including further capital-accretive disposals of legacy assets, which it has accelerated since the start of the year.
Barclays also said it continue to strengthen its capital position and its current plan targets a fully loaded Basel 3 CET1 ratio at 31 December 2013 of approximately 9%, increasing to 10.5% by the end of 2015.
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