Barclays Capital will not participate in the U.K. government’s asset protection scheme, according to market reports.

“Following further careful assessment and discussions with major shareholders, the Board of Barclays has determined that it would not be in the interests of its investors, depositors and clients to participate in the Asset Protection Scheme,” the bank announced after the markets closed yesterday.

An extreme stress test by the Financial Services Authority (FSA) last week also supported the decision, finding that the bank did not need to raise fresh capital. The market reports said that the stress tests carried out by the FSA examined how Barclays would perform in a U.K. recession lasting at least two years.They tested a number of different scenarios including a 50%  fall in house prices as well as declines in gross domestic product and in commercial property.

The Royal Bank of Scotland, along with Lloyds Banking Group, have already signed up to the scheme, which insures against losses arising from toxic assets. The two banks will insure nearly £600 billion ($858 billion) worth of toxic debts as part of the scheme.

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