Barclays to appoint Debenhams chairman as head of UK bank

Barclays has selected Debenhams chairman Ian Cheshire as its number one candidate to lead its new ring-fenced UK bank as it prepares to adopt a new regulatory framework designed to insulate taxpayers in the event of a future financial crisis, according to a report by Sky News.

An application regarding the appointment has been submitted to banking watchdog Prudential Regulation Authority (PRA), according to insiders.

If approved Barclays intend to make an announcement about his recruitment in January, they added.

Cheshire, former boss of B&Q-owner Kingfisher, is one of Britain’s well known businessmen. Aside from chairing Debenhams, he has acted as the government's lead non-executive director in Whitehall.

One concern about his appointment to head Barclays’ UK operations could be related to his prior directorship of Bradford & Bingley, the high street mortgage lender which had to be bailed out by taxpayers during the 2008 financial crisis.

Cheshire was a non-executive on B&B’s board for several years before a shutdown in the wholesale funding markets led to its need for state funding.

Barclays's new ring-fenced bank, with roughly 22m retail customers and 1m business clients, will be one of the largest UK-based lenders.

Applications for the chairmanship comes a year after the current chairman John McFarlane angered the Bank of England through its proposal for a structure under which its retail operations would temporarily be owned by its investment bank.

The plans were changed after the Governor of the Bank of England Mark Carney stepped in to intervene.

Barclays said it plans to implement its ring-fencing plans during the Easter weekend in 2018, giving it time to executive the logistically complex task of creating a major new UK bank.