Britain’s Third-Largest Bank Meets Stress Test Requirements

Barclays PLC, Britain’s third-largest bank, confirmed Friday that the U.K. Financial Services Authority [FSA] has examined and applied a “detailed” stress test to its balance sheet and indicated the bank still meets the regulator’s capital requirements under credit risk, market risk and economic scenarios. The bank said the FSA had also applied a stress test to its profit-and-loss account.

London-based Barclays said today in a statement: “Barclays confirms, following this work and discussion with the FSA, that its capital position and resources, after exposure to the stress, are expected to continue to meet the capital requirements which the FSA published on Jan. 19.”

The Financial Services Authority is doing the current stress test of Barclays’ balance sheet as part of negotiations over possible participation in the government’s asset protection scheme, under which the bank could insure itself against extreme losses on particularly toxic assets.

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