Barclays have seen a jump in its shares after a report that they will not need more money if it joins the Treasury’s asset insurance scheme.

Shares in the bank rose by 24.1%, and have surged by 60% over the last week.

The bank was subjected to an “extreme stress test” by regulators, who concluded that they do not think the bank needs fresh capital.

The Asset Protection Scheme attempts to insure the riskier bank assets from further loss by using government money to insure them against it.

Barclays released a statement saying that it: “confirms, following [the stress test] and discussion with the FSA, that its capital position and resources, after exposure to the stress, are expected to continue to meet capital requirements which the FSA published on 19 January 2009.”

The Chancellor is hoping that the protection scheme will help restore confidence in the entire banking sector.

Not Out of the Woods Yet

Lloyds Banking Group and the Royal Bank of Scotland are already a part of the scheme. Lloyds shares have already increased by 9.3%.

However, the government has already taken over a 65% stake in Lloyds and has said it will insure up to £260 billion of the banks toxic debt. It is therefore unlikely, if the Barclays report is anything to go by, that Lloyds will require any further money from the government either.

Somehow, Barclays bank is among few that have been able, so far, to remain profitable during the financial difficulties, much unlike its peer companies, like Lloyds and RBS, which have recorded the biggest financial loss in corporate history and have therefore been part-nationalised.

Barclays was apparently considering earlier this month whether or not to join the new government scheme.

The FSA however, after conducting the review on the bank are not commenting on the findings.

The Bank of Ireland has also said it won’t need more loans from the Irish government after it got 3.5 billion euros of aid in February.

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