Barclays Reportedly Won't Need Extra Capital

LONDON -- Shares in Barclays(BCS Quote) rose Friday following a report that regulators believe the bank may not need to sign up for government insurance against losses on bad assets.

The Financial Times, quoting unidentified sources, said the Financial Services Authority was close to completing stress tests on Barclays books. The newspaper said the regulator has indicated that Barclays doesn't need a further injection of capital.

The Financial Services Authority declined to comment. The deadline for signing up to the insurance program is next Tuesday.

Barclays shares rose more than 9% in morning trading on the London Stock Exchange.

Royal Bank of Scotland (RBS Quote) and Lloyds Banking Group (LYG Quote) have signed up for the Asset Protection Scheme, which includes a legal requirement to increase lending to homeowners and businesses, and sets controls on executive pay and bonuses.

Barclays, unlike RBS and Lloyds, has not turned to the government to bolster its finances, but raised new funds from investors in the Middle East, including the Qatar Investment Authority and Sheik Mansour Bin Zayed Al Nahyan of the Abu Dhabi royal family.