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Co-op Bank put up for sale

Co-op Bank put up for sale

LONDON: The board of the Co-operative Bank has hoisted a for sale sign over the troubled lender as concerns mount over its capital position. The bank, which has four million customers, said that its ability to meet longer term UK bank regulatory capital requirements has been hampered by low interest rates and higher than anticipated transformation and “conduct remediation” costs. As a result, and following an annual planning review, it is “inviting offers”, the bank said.

“The board is commencing a sale process, something always considered a potential outcome of the turnaround plan, alongside considering other options to build capital and meet the longer term capital requirements applicable to all UK banks,” the bank said in a statement. Last week the Co-operative Group, which owns 20% of the bank, embarked on a top-level shake-up that will see Richard Pennycook step down as group chief executive.