Metro Bank: M Capital and Fund Growth

metro bank: Why is Metro Bank in the headlines The bank, which has 1.7 million customers and 67 branches in London and the south-east, is dealing with the fallout from the accounting blunder, which is being investigated by two financial regulators, according to The Guardian. It then announced a 350m capital raising to fund growth, having tapped investors for an extra 300m last summer. Shares in the bank have lost three-quarters of their value since it revealed a major accounting error in January. This was followed by a poor first quarter of 2019 when profits halved to 4.3m, as the bank revealed that a small number of large business customers had left. Banks have to set aside more capital for riskier products, to ensure they can survive in a sudden downturn. The Prudential Regulation Authority spotted the accounting error, which meant a large chunk of commercial property loans and loans to commercial buy-to-let operators had been wrongly classified as lower risk. ( As reported in the news.

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