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Mr. Lucas said Barclays was keeping its options open in regard to improving capital.
The company has benefited from improving capital markets activity as well a steady recovery in consumer credit and business lending.
While improving capital standards at banks is necessary for building a stronger, more stable financial system, it is not sufficient.
"Investments from sovereign wealth funds can also bring benefits by relaxing borrowing constraints, reducing the cost of capital for businesses and by improving capital allocation".
To that extent, bailout money has been useful for improving capital ratios — the amount of money available to absorb losses — for banks that merge.
"But if the economy worsens more than expected, it will be necessary to continue increasing and improving capital as necessary in order to have solid entities".
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In a move known as liability management, banks can improve capital levels without raising additional funds.
"They are limited in what they can do to improve capital spending, and that's the weakest sector," he said.
Improved capital requirements and leverage restrictions are now also under consideration in international forums as a key element of reform.
"Any significant fall in the current geopolitical and other risks should noticeably improve capital outlays, the indispensable spur to a path of increased economic growth," he said.
Regulators have improved capital ratios but they still seem wedded to the idea that time is the best healer of banks' balance sheets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com