Co-Op Bank Test, Temporary Tax Fix, Lawsky: Compliance
Co-Operative Bank Plc, the U.K. lender that ceded control to its creditors last year, will probably fail Bank of England stress tests this month, Chief Executive Officer Niall Booker said.
“It will come as no surprise if the bank does not meet the desired capital ratios,” Booker said yesterday in an e-mailed statement. The BOE will announce the results of stress tests on the U.K.’s eight biggest lenders on Dec. 16.
Booker is working to refocus the bank on retail customers and to boost capital after the 150-year-old company had to raise about 400 million pounds ($627 million) in May to plug a hole in its balance sheet. Co-Operative Group, the bank’s parent company, ceded control of the operation, prompting the departure of executives including ex-Chairman Paul Flowers.
About 70 percent of Co-Operative Bank’s 41 billion pounds in customer loans are residential mortgages, Booker said in yesterday’s statement.
