Barclays is to launch a rights issue in order to raise more than £5 billion ($7.7 billion) to meet the regulatory requirements set out by the Prudential Regulation Authority (PRA).
The Financial Times reports the move from the UK bank will leave it with a core tier one capital ratio of close to 9.5 per cent, in line with the Basel III rules, according to people familiar with the situation.
Barclays has been drawing up a plan to take action on its capital after the PRA said it only had a leverage ratio of 2.5 per cent, compared to the new requirement of three per cent.
The ratio, which measures risk, will bring the company into the same position as other international banks.
It was thought the institution had negotiated a longer deadline to make the requirements, pushing the end of 2013 date to later in 2014, but it appears this deal may not be necessary now.
Chief executive Antony Jenkins will also unveil details on shrinking the bank’s balance sheet today (30 July).
By Gary Cooper