Barclays 2007 Annual Report Download - page 15

1
Business review
Barclays PLC Annual Report 2007 13
Tier 1 Capital Ratio
Capital requirements are part of the regulatory framework governing how
banks and depository institutions are managed. Capital ratios measure
the percentage of a bank’s capital to its risk weighted assets. Tier 1 capital
is defined by the FSA and consists largely of shareholders’ funds.
Barclays operates a centralised capital management model, considering
both regulatory and economic capital. Decisions on the allocation of
capital resources, conducted as part of the strategic planning review,
are based on a number of factors including returns on economic and
regulatory capital.
The Group’s capital management activities seek to maximise shareholder
value by optimising the level and mix of its capital resources. The Group’s
capital management objectives are to:
– Support the Group’s AA credit rating.
– Maintain sufficient capital resources to support the Group’s risk
appetite and economic capital requirements.
– Maintain sufficient capital resources to meet the FSA’s minimum
regulatory capital requirements and the US Federal Reserve Bank’s
requirements that a financial holding company be well capitalised.
– Ensure locally regulated subsidiaries can meet their minimum capital
requirements.
The key measure the Group uses to assess its capital strength is the Tier 1
capital ratio which represents Tier 1 capital compared to risk weighted
assets. The Group targets a Tier 1 capital ratio of 7.25%.
Employee engagement
Employee opinion surveys are used extensively across the Group to
provide leaders with valuable insight to employee views. This is important
because research has consistently shown that committed people are a
crucial factor in achieving great customer service and excellent business
performance.
The participation levels in the surveys conducted in 2007 were the
highest we have achieved.
90
82
74
72
2007 Employee opinion surveys – response rates %
Global
Retail and
Commercial
Banking
Barclays
Global
Investors
Barclays
Wealth
Barclays
Capital a
89
Head
office
functions
and other
operations
Note
aBarclays Capital runs a survey biennially. The participation level in the most recent
survey (2006) is shown.