Regulator places added pressure on Co-Op Bank
(4 April 2016 – United Kingdom) The Co-operative Bank is under renewed pressure from industry regulators to accelerate an overhaul of its business according to Sky News.
The broadcaster, last week said, the Prudential Regulation Authority (PRA), the UK banking industry watchdog, ordered the bank to resubmit parts of its business plan prior to the announcement of its annual results late last week.
Sources have said Co-Op Bank’s performance last year had been dragged down by bigger than expected risk and conduct provisions, dealing a blow to investors' hopes of a turnaround led by Niall Booker, its chief executive.
Sky News further revealed last week that former Barclays and Santander executive, Stephen Jones, has been approached by the Co-op Bank's board as a potential successor to Booker.
Jones has not yet accepted the role.
According to reports, Booker's contract with the bank expires at the end of 2016, however his tenure may be extended should Jones not to step into the role and another suitable candidate fails to emerge.
Banking sources believe the Co-op Group is likely to sell its stake in the bank in the next couple of years, probably as part of a merger with another 'challenger' bank.
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