Barclays to shrink capital buffer
Bank targets excess capital over regulatory minimum of 100 basis points by year-end
UK lender Barclays aims to reduce the amount of capital it holds in excess of its regulatory minimum requirement having come out the other side of a period of restructuring and high legal costs.
The bank is targeting a Common Equity Tier 1 (CET1) capital ratio of 13.5%, 100 basis points above its maximum distributable amount (MDA). Under European Union rules, a bank that falls below its MDA hurdle faces restrictions on dividends and other payouts to shareholders.
As of end-2019, Barclays’ MDA
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