One of the leading international banks, Barclays is most likely to be affected by the Independent Commission on Banking's (ICB) interim report. The list of the banks will include Barclays, Royal Bank of Scotland, Lloyds, HSBC and Standard Chartered.
Barclays received a total score of 227 from the report whereas Lloyds banking group received 219 and RBS at 216. HSBC and Standard Chartered were at the lowest risk with 151 and 144 points respectively.
Cavendish Asset Management Fund Manager, Paul Mumford said that the ICB’s report is expected to force Barclays into ring-fence investment banking and retail banking into separate legal entities which will affect the current situation of the bank.
Barclays is expected to face the biggest possible hit related to its higher capital costs on its BarCap investment banking operation, which is larger than the similar units at RBS and HSBC.
The ICB will also recommend few measures that will help the customers in changing from one bank to another more easily. There will be no such policy which will cause the values of shares to fall in market.
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