The bank’s new capital plan is “fully credible, the PRA board looked at that carefully and reached that conclusion as well. The BoE’s Financial Policy Committee judged that no system-wide macroprudential action on bank capital was needed in response to the test. RBS modelled its own performance based on the test and approached the BoE with a revised capital plan before it was asked to provide one by the central bank. Barclays failed to meet its systemic reference point without triggering additional Tier 1 securities, bonds that convert to equity in times of financial stress, meaning it failed the higher threshold of the BOE test. The London-based lender wasn’t asked to resubmit its capital plan because it’s already taking actions, including plans to sell its Africa business.

Source: Mint November 30, 2016 10:18 UTC