Bank’s chief executive points to rising fraud as it sets aside a further £105m for motor finance compensation

• Business live – latest updates

Barclays is pulling back from lending to risky borrowers, as its chief executive warned of increasing numbers of fraud cases and the bank took a £228m hit from the failure of a mortgage lender.

The mortgage lender Market Financial Solutions (MFS) collapsed in February amid allegations of fraud and the UK’s financial regulator has since launched an investigation into the scandal.

The campaign is part of government initiative to boost financial risk taking, amid fears UK growth is being stymied

• Nils Pratley: the ‘Savvy Squirrel looks a hit too tame’

City firms are pinning their hopes on a government-endorsed advertising blitz fronted by a finance “savvy” CGI squirrel to encourage cautious British savers to shift out of cash and start investing.

The long-awaited retail investment campaign, which will cost up to £50m, is part of the chancellor Rachel Reeves’ nationwide push to encourage more financial risk taking, amid fears risk-averse consumers are losing out and ultimately stymying UK growth.

HSBC, Barclays, Lloyds, NatWest and Santander will this week discuss with chancellor how to limit effects of conflict

• Middle East crisis – live updates

The bosses of Britain’s “big five” retail banks have been summoned to a meeting with the chancellor, Rachel Reeves, this week to discuss how to limit the economic impact of the crisis in the Middle East triggered by the US and Israel’s attacks on Iran.

The chief executives of HSBC, Barclays, Lloyds, NatWest and Santander have been asked to attend an emergency summit on Wednesday, amid increasing acceptance that a major economic hit from the Iran war is unavoidable.