The Bank Runs Continue: Metro Bank Reportedly Trying to Raise £600 Million

The halts followed reports that the bank was trying to raise £600 million ($727 million) in debt and equity. The challenger bank, which launched in 2010, has a market cap of less than £100 million.Metro Bank has seen its share price tumble more than 50% this month after the Bank of England’s decision to disallow it to use its own internal models to assess the risks of its mortgages.Metro Bank said in a statement that it is currently considering “how best to enhance its capital resources,” with a particular focus on a £350 million bond due to mature in October 2025.“It has been clear for some time that [Metro] is short of capital, with the bank operating below MREL requirements,” investment bank Keefe, Bruyette & Woods said in a research note.The key questions now facing the bank focus on its ability to raise that capital and whether that will be sufficient to remove capital concerns, the note said.According to Financial Times, Metro Bank’s chair and chief executive have been summoned to urgent talks with the UK’s top financial regulators today.

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