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Barclays most at risk from ICB measures

Friday 8 April 2011 - by Nicola York

UK banks are bracing themselves ahead of the Independent Commission on Banking's interim report on Monday as it emerged that Barclays is the bank most likely to be affected by potential measures.

In a heat map compiled by Goldman Sachs Research, Barclays emerges as the most at risk from the proposals which will dictate the future structure of the banking system and could include the separation of retail and investment banking, subsidiarisation, restricting specific activities and short-term funding restrictions.

Barclays received a total score of 227 compared with Lloyds banking group at 219 and RBS at 216. HSBC and Standard Chartered are seen as lowest risk with 151 and 144 respectively.

The heat map gives a score of between one and three with one representing a limited impact from the implementation of measures and three representing a material impact from the measures.

The measures are split into stability and competition and are also ranked in terms of the likelihood of them happening with one being unlikely and three being likely.

The measures ranked as being most likely include operational subsidiarisation, restrictions on specific activities, living wills and ring fencing UK retail deposits. Minor assets sales, support for new entrants and pricing transparency are also tipped as likely measures.

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