The UK Prudential Regulation Authority's determination that Barclays' balance sheet falls short of a 3% minimum leverage ratio has forced a rights issue from the bank. "The PRA appears to be telling the UK banks to structure their Pillar 1 Additional Tier 1 instruments such that they meet the PRA's expectations, rather than the more investor-friendly [cash-reserve ratio] requirements," said Emil Petrov, Nomura's head of capital solutions.

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