When Vernon Hill launched Metro Bank in 2010, his Yorkshire terrier tucked under one arm, he vowed the upstart lender would challenge the dominance of Britain's big banks.
While Metro, which used to offer dog biscuits for customers' pets, was Britain's first new high street bank in more than 150 years, it was soon followed by other new entrants, such as fast-growing digital lenders Monzo and Starling Bank.
Creditors also appear in favour of the deal, with support secured just shy of the 75% threshold needed as of Monday, two sources familiar with the situation said.The fundraising package will also hand Metro's biggest shareholder, the Colombian billionaire Jaime Gilinski, a controlling stake in the bank. Gilinski, whose daughter Dorita is on Metro's board, will inject 102 million pounds to take a 53% stake.
While some have made a dent in the current account market - with Monzo for instance amassing 8.4 million customers - few have entered or made real headway in key markets such as mortgage lending. Two sources close to Metro said the capital rules had been a key contributing factor to its problems, which began in the years after it floated on the London Stock Exchange in 2016.obtain key capital relief and faced with looming debt maturities, Metro last month enlisted Morgan Stanley to advise it, people familiar with the move said.Britain's principal banking regulator, the Prudential Regulation Authority , declined to comment.
"It's hard to see how investors will rally behind ," said Rupak Ghose, corporate strategist and former financials analyst. Markets regulator the Financial Conduct Authority said competition had increased in the banking sector and it was continuing its work to improve this.slid after the midsize specialist lender said it would take a hit of up to 180 million pounds due to changing customer behaviour.One option is for smaller banks to gain scale through mergers and acquisitions.But deals could be tough to strike, as buyers have to mark down assets due to rising interest rates, one source said.
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