Metro Bank admits Bank of England uncovered accounting error


Shares in Metro Bank dropped to a record low after the bank said the Bank of England found an accounting error.

However, Craig Donaldson, chief executive of Metro Bank, said that through an internal review, it was the banks staff that found the mistakes, which were in the way they classified loans.

Wednesday evening, it was said that the Prudential Regulation Authority (PRA), had uncovered the mistakes, Metro Bank did confirm that “potential inconsistencies” were found by the PRA in the loan book, prior to the bank doing any internal review.

In a statement Thursday, the bank said, “Ongoing supervision by the PRA helped to identify potential inconsistencies in certain loans which were raised with the bank.

“Metro Bank then undertook a comprehensive review, in order to establish the full picture before our year end, which identified the need to make adjustments in our risk-weighting of some commercial and specialist buy-to-let loans.”