Co-op Bank signs £700m rescue deal

Money

The Co-operative Bank has secured £700m of funding to meet regulatory capital requirements, staving off a once-mooted sale.

The lender got the money from a group of existing investors.

A Co-operative Bank statement says: “The board believes that the proposal will enable the Bank to thrive as a stand-alone entity, with values and ethics and strong customer service continuing at the heart of its business.”

Earlier this week the Co-operative Bank said it was in “advanced discussions” to secure the extra cash.

The lender was struggling to meet its capital requirements due to high interest rates and “higher than anticipated transformation and conduct remediation costs”.

The lender had previously been courted by firms such as Santander, Virgin Money and Banco Sabadell, though both pulled out of sales talks.