Teaching Note | HBS Case Collection | March 2014

Barclays Bank and Contingent Capital Notes, 2012

by Lucy White


In 2012, regulatory changes following the financial crisis mean that Barclays Bank is faced with the need to raise large amounts of capital in order to comply with increased capital requirements, tightening rules as to the "quality of capital," and increased risk weights for its capital markets assets. The bank is contemplating offering contingent capital bonds, which would act like debt during "normal times" but would convert to create capital should the bank hit a "triggering event." How should these instruments be designed? Can they be attractive for the bank and for investors?

Keywords: Capital; Financial Crisis; Banks and Banking; Banking Industry;


White, Lucy. "Barclays Bank and Contingent Capital Notes, 2012." Harvard Business School Teaching Note 214-069, March 2014.