Bank of England welcomes Barclays' new capital plan

The Bank of England has welcomed Barclays' new capital plan to meet City regulator demands to shore up its finances.

The group is to issue new shares at a discounted price as part of a fundraising boost for the bank.

Following constructive discussions, the PRA has agreed and welcomes Barclays capital plan, announced today.

We have considered all elements of the plan, including new capital issuance, planned dividends and management actions to be taken and, based on Barclays' projections, conclude that it is a credible plan to meet a leverage ratio of 3%, after adjustments, by June 2014 without cutting back on lending to the real economy.

– Bank of England spokesperson

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Barclays plans £5.8bn cash call

Barclays' shares have fallen 5% after it announced plans to raise £5.8 billion from shareholders. City regulators said the bank needed to raise £3 billion in reserve to cover their risks.