Page 21 - Barclays Bank (B) Teaching Note
P. 21
The new regulatory U.K. capital rules as well
as the introduction of a new 8 percent
surcharge on bank profits in January 2016 is
P Political Factors more taxing if a bank has an overseas
subsidiary, which is why it impacted Barclay’s
foreign subsidiary in Africa contributing to
the major decision to sell down the
shareholding.
A major economic factor lies with the
uncertainty of Brexit. A UK exit from Europe
poses a significant challenge to many banks
including Barclays as evidenced by the Economic Factors E
consequent decline in the value of pound
sterling against the major currencies
including the U.S. dollar and Euro. Social changes in general have the potential
to either be threats or opportunities. One
such demographic change is that of the
ageing population in both the U.K. and the
S Social Factors U.S.A.
This demographic change affects Barclays
core markets but does present as business
Digital capabilities are accelerating opportunities for the grey market has greater
within the Banking sector to the extent disposable incomes.
that every aspect of banking can now be
done online. Changes also include Technological Factors
blockchain technology, biometrics, T
robotic automation and the rise of
FinTech firms
Diagram 2
