The bank is expected to reveal the outcome of its long-running talks with the Prudential Regulation Authority, the regulatory arm of the Bank of England, when it announces its half-year results on Tuesday.
It has been reported that Barclays will be expected to meet a tougher measure of risk and capital known as the leverage ratio by the end of 2014. That deadline would be a year earlier than Barclays had planned, but a year later than it was thought regulators had initially intended to impose a cut-off point.
Analysts had calculated that if Barclays needed to achieve a 3% leverage ratio – up from 2.5% now – by the end of 2013 it would need to find up to £7bn. While it may not need to achieve this target, there had been suggestions that the bank might raise fresh capital anyway.
According to the Wall Street Journal, the bank is planning to issue contingent convertibles, or Cocos – debt which converts into shares if certain regulatory limits are breached. It also reported that the bank might also issue shares – although this may surprise big investors who have not been anticipating any major capital-raising exercise as soon as Tuesday.
The discussions between the regulator and Barclays are thought to be continuing and may not end until Monday.
RBS will issue its results on 2 August amid expectations that it is preparing to appoint a successor to Stephen Hester, who resigned last month in the face of pressure from the government, which owns 81% of the shares. The Edinburgh-based bank is also under pressure about a continuing investigation into allegations about the sale of certain types of bonds to big US mortgage companies before the 2007 credit crunch.
The focus was turned on RBS, which is one of 18 banks under investigation, by an announcement late on Thursday that the Swiss bank UBS had paid $885m (£575m) to the Federal Housing Finance Agency to settle allegations it had misrepresented mortgage-backed bonds.
Ian Gordon, a banks analyst at Investec, said: "Following UBS's $885m FHFA settlement, there is likely to be increased speculation around RBS, which appears to be the most exposed UK bank. Our existing forecasts assume a £0.4bn charge in [the fourth quarter], though there is a lot of guesswork here in terms of timescale and amount, with downside risk."
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