The UK banking regulator is still pushing for the Metro plan on Monday, the source said

People walk past a Metro Bank in London, Britain on May 22, 2019. REUTERS/Hannah McKay/File Photo Get license rights

LONDON, Oct 8 (Reuters) – Britain’s Prudential Regulation Authority (PRA) is continuing to work with Metro Bank ( MTROLL ) to present a plan by Monday morning. A person who knows the situation.

In recent days the PRA has called on major UK lenders including HSBC ( HSBA.L ) and Lloyds ( LLOY.L ) to make an offer to the lender, the person said.

After several failed approaches earlier in the year, Shawbrook is considering a new bid for London-listed Metro Bank, people familiar with the matter told Reuters.

The Financial Times reported earlier on Sunday that JPMorgan ( JPM.N ) had opted not to pursue a bid for Metro, while Sky News reported Santander ( SAN.MC ) had hired consultancy Robey Warshaw to work on a potential offer.

The PRA, HSBC, Shawbrook and JPMorgan declined to comment. Metro Bank, Lloyds and Santander did not immediately respond to a request for comment.

Metro Bank saw its shares tumble after news emerged that the bank had hired consultants to shore up its balance sheet as it failed to secure major capital relief from regulators.

The bank is exploring options to raise 600 million pounds ($734.28 million) in capital through equity and debt injections and asset sales.

Metro Bank on Thursday said its options include equity and debt issuance, as well as refinancing and asset sales. It said it had met its minimum capital requirements and had not made any decisions on fundraising plans.

Metro Bank’s customer deposits, like other UK banks, are backed by a government guarantee of up to £85,000.

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Reporting by Elisa Martinuzzi, Pablo Mayo Cerquerio, Iain Withers and Amy-Jo Crowley, Editing by Bernadette Baum and Ros Russell

Our Standards: Thomson Reuters Trust Principles.

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As part of the Reuters Deals team, Pablo covers equity and debt capital markets transactions across Europe, the Middle East and Africa, from initial public offerings to buyout financing. He previously worked at Mergermarket, Euromney and Spanish Digital Media. Contact: +447721821589

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