Staley, feted for his achievements at U.S. powerhouse JPMorgan <JPM.N>, pledged to revive Barclays' tired investment banking franchise as soon as he joined the bank in 2015, ending years of under-investment in the wake of the financial crisis.
The stability, he estimated, will only be increased by the 55-billion-euro common fiscal backstop to be established within the European Union by 2023 and by the banking union advocated by Finland.
This refers to a situation in which several countries borrow from just a few big international banks, raising the risk that losses in one country encourage the banks to withdraw from other borrower countries as well.
Freshly armed with a UK banking licence, FirstRand will launch transactional banking through Aldermore, chiefly to attract more deposits.
It has informed members of its London-based derivatives and debt capital markets teams working on German accounts that their activities will be relocated to its base in Frankfurt and to make the necessary preparations to move to those offices by end-June,
Mr Higgins, Tesco Bank’s chief executive, said: “There is an incontrovertible case for creating the Scottish National Investment Bank."
Historically, this development bank has been one of the largest investors in projects in the UK, providing billions in funding for large-scale transport, social housing, energy and health sector schemes.