Barclays to shrink capital buffer

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