Barclays' chief executive, CS Venkatakrishnan, has defended the ring-fencing regulation that British banks are subject to, despite calls from his FTSE 100 counterparts for the Chancellor to abolish it.
Speaking to Sky News on Wednesday morning, Venkatakrishnan argued that the protection offered by these rules outweighs the costs of implementing and maintaining the system, as reported by .
The 海角视频's ring-fencing regime, which was introduced following the financial crisis and mandated in the Financial Services Act 2003, requires major banks to separate their retail banking operations from their investment banking activities.
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HSBC, Lloyds, Natwest and Santander bosses have written to Rachel Reeves, lobbying for the Chancellor to scrap the system.
They argue in a letter obtained by Sky News that the system "is not only a drag on banks' ability to support business and the economy, but is now redundant".
This comes as the government pledges to cut red tape hindering economic growth.
Barclays has largest investment bank in 海角视频
Despite Barclays having the largest investment bank in the 海角视频, Venkatakrishnan maintains that while there may be "a bit of friction, trapped capital and administrative costs", the net benefits are significant.
He stated: "There are two counterpoints: we have spent the money on the set-up and we make it work; but the more important fact is that you have to weigh against this the immense amount of depositor protection that the ring-fencing regime gives the country."
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He remarked: "I don't think ring-fencing should be relaxed or scrapped."
These observations were made as Barclays released its first-quarter report on Wednesday morning.
The bank's investment division, a crucial segment of its operations, saw a 16 per cent increase in income to £3.9bn amid early-year market volatility.
This surge in activity enabled Barclays to record a pre-tax profit of £2.7bn, surpassing the £2.5bn forecasted by analysts.
With the largest investment banking network in the 海角视频, Barclays significantly overshadows its more domestically-oriented competitors, Lloyds and Natwest.
The ring-fencing regime ensures a clear demarcation of risk for Barclays' investment branch, safeguarding its retail banking activities from potential losses and guaranteeing the security of deposits.