Metro Bank handed capital boost from banking watchdog

cityam12-19

Metro Bank has been boosted by MREL.Photographer: Simon Dawson via Getty Images) High street lender Metro Bank is set for a major capital boost after a reclassification from the banking watchdog.The ...

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This marks a significant reduction in the extra layer of expensive debt Metro must hold as a safety net.“We are pleased to have received confirmation of our MREL reclassification, as we anticipated following the Bank of England’s announcement in July,” Daniel Frumkin, chief executive of Metro, said. “This is a positive development which affords us more capital flexibility, enhancing our ability to lend into the UK economy and creating further value for our shareholders”.   \n\nAnalysts at the Royal Bank of Canada slapped an upgrade on the firm following the changes with sentiment listed as ‘Positive’ and the stock expected to ‘Outperform’ the sector average.The changes to the MREL regime have been welcomed across the banking sector.Nigel Terrington, chief executive of Paragon, said the loosening of banks’ capital requirement rules, known as MREL (minimum requirement for own funds and eligible liabilities), will open up further growth prospects for mid-cap lenders. He told City AM: “Before it was like: ‘That’s a good acquisition, I want to do that’ – and then you realise you get dragged into MREL.”","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2592163840","isCrawlerRequest":true}