Barclays completed a series of stress tests this weekend, designed to investigate whether or not the bank needs to sign up to the government"s controversial Asset Protection scheme - and they seem to have passed.
The Financial Services Authority designed the tests, which aimed to simulate Barclay"s ability to react to various situations, including three consecutive years of negative national economic growth.
Having passed the tests, Barclays"s directors may now decide whether or not to take advantage of the scheme. Had they failed, the government would have forced them to participate.
While it is as yet unclear whether or not Barclays will participate, many commentators are suggesting that they are likely to reject the government"s offer. Barclays appear reticent to give in to part nationalisation; the bank sought private funding from the Qatari state earlier this year, rather than accept money from the British government.
