FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Barclays Bank turns down UK government insurance scheme

As expected, after a green light from the Financial Services Authority, Barclays Bank has today refused to join the UK government's toxic asset insurance scheme. Citing the massive charges levied against banks in the scheme, Barclays is more than prepared to go it alone after receiving a clean bill of health from the FSA.



While there is no doubt that Barclays Bank, much like the vast majority of UK banks, does have substantial debt which could turn toxic in the short to medium term it would appear the bank has significant financial backing for the next five years. Stress tests carried out by the FSA suggest that the company could easily cope with a serious downturn in business from current levels, which may well surprise many. Shares in Barclays Bank had effectively been in freefall prior to the announcement from the FSA regarding the improved financial backing situation.



While it would be easy to read too much into the situation at Barclays Bank, with some people suggesting the worst is over, as we have seen over the last few months the situation in the UK banking sector can change very quickly. Even though Barclays Bank is on the verge of selling its iShare business, there is no guarantee it will not need additional finance from the government in the future.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue