Barclays May Quit Retail Banking After Repaying PPI Refunds

July 13, 2015
by admin in PPI News

Barclays is hinting that it might invest in its alternative ringfencing plan as it gives hints that it is about to drop retail banking. The reasons behind Barclays’ possible move is the high amount of payment protection insurance or a troubled CEO.

Analysts agree with the latter as CEO  Anthony Jenkins had been sacked from his position. He lacked a decisive plan to cut the bank’s costs. As Barclays needed to step up in retail banking, Jenkins could not persuade the bank’s investment consumers.

Jenkins is a big name in retail banking. However, analysts also find it is possible Barclays is no longer interested in running a retail bank. Barclays is one of the UK’s biggest high street banking chain, but it may choose to become an investment bank after Jenkins’ departure.

However, many believe that due to their high PPI bills and putting retail with its Barcap products will just make the operations of such products to compete with other bank products. Barclays is now paying more than £6 billion for mis sold PPI.

The total PPI bill is now £26 billion. It is estimated to go up this year.