Answer a)
Rationale for right issue The declaration of Right Issue by Barclays Bank was part of the announcement by Prudential Regulation Authority (PRA) on June 20th, 2013, where after scrutiny of capital adequacy of major banks in the nation, it announced that all the banks should have Leverage Ratio of 3%, calculated on a PRA-adjusted CET1 capital base and using a CRD IV leverage exposure measure. However, on that date, Barclays' PRA Leverage Ratio was 2.2%, representing a deficit of £12.8 billion in volume. Thus, in order to achieve the target PRA Leverage Ratio of 3% by stipulated deadline of Continue reading...
