Metro Bank shares sank on Thursday after the Financial Times reported the challenger bank was in talks to raise £600m to bolster finances.
The Financial Times reported people with knowledge of the matter said Metro Bank were exploring a £250m equity raise and £350m in debt financing.
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Metro Bank shares were down 18% at the time of writing on Thursday and have cratered around 60% over the past month.
The company announced in September they had been in discussions with the PRA about capital planning for their residential mortgage business but the regulator declined Metro Bank’s effort to lower their capital requirements.
Metro Bank has previously been fined for misleading investors about the risk of their mortgage business.