View more on these topics

Barclays chief warns against excessive capital requirements

Barclays chief executive John Varley has warned against the introduction of overly onerous capital requirements and regulation for banks.

Varley, giving evidence to the Treasury select committee inquiry on whether financial institutions are too important to fail, said banks must be allowed to be profitable.

He said banks will need to be in a strong financial position when the Government withdraws it’s support and warned that forcing banks to hold excessive capital may prevent that.

He also said if all the new regulation currently being proposed for the banking sector is implemented, it will be too onerous.

Asked whether big banks should be broken up, Varley insisted that smaller banks are more volatile than large institutions.

He said the system will not be saved by making big banks smaller, but by making them safer and by basing capital requirements on risk, rather than the size of banks.

Varley said he is confident that Barclays is in a strong financial position, having recorded a profit for every quarter since the start of the economic crisis in September 2008.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com