British lender Metro Bank is in talks with its shareholders to discuss funding options, as it seeks to strengthen its finances and regain the confidence of regulators, according to a source familiar with the matter. The bank has faced several challenges in recent years, including accounting errors, leadership changes, and delayed regulatory approvals. Metro Bank is considering various funding options, including a proposal from bondholders to inject £600 million ($733.98 million) into the bank. However, the bank is concerned that this proposal would result in too much control being handed over to bondholders. Equity holders are now being consulted on the matter. Metro Bank has been in regular communication with its principal regulator, the Bank of England’s Prudential Regulation Authority (PRA), as it explores its options. One potential option being considered is the sale of part of its mortgage book. Metro Bank has declined to comment on the situation, and the Bank of England has not yet responded to a request for comment. The bank’s shares have experienced significant volatility in recent weeks. As of now, £1 is equivalent to 0.8175 pounds.
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