Serenity in Lloyds and Barclays despite weaknesses



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Lloyd's Bank

The UK bank expects a 2% increase in Tier 1 capital ratio this year.


(Photo: Reuters)

LondonBritish banks Lloyds and Barclays demonstrate their composure after weak resistance test. Lloyds said his own capital was still solid. The traditional institute provides for a two percentage point increase in common equity category 1 for the entire year. For Lloyds, the fitness test conducted by European banks revealed that this value had dropped to 6.8% in a simulated stress scenario.

In Barclays, his rival, he was 6.37%. Barclays said the bank continues to aim for a goal of about 13%. In the stress test, the banks had to show how strong their capital buffer would be in a severe financial and economic crisis.

Both British banks have pbaded the test, but surprisingly weak. Bankers and many of their UK customers are shaking off the upcoming EU country exit. To increase their profits, UK institutions have recently taken larger credit risks, making them more vulnerable in the event of a crisis.

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