Reportedly scrapping early termination fees for some SME borrowers.
High street challenger Metro Bank has slashed early termination fees for some of its SME borrowers as part of a wider move to reduce its exposure.
First reported by The Sunday Times, Metro has let some business borrowers pay off their loans early without penalty, as a way of reducing its SME loan book.
The move comes following Metro’s May accounting error which saw the bank perform a brakeneck £375m capital raise due to the mis-classification of “low risk” loans it was holding.
Metro Bank, founded nine years ago, has now seen its shares tumble over 90 per cent over the last year.
In July Metro sold a portfolio of mortgage loans to Cerberus Capital Management for £521m, and its chair Vernon Hill stepped down.
In February, before the accounting error arose, Metro said it would rebalance its lending towards residential property and reduce its reliance on commercial real estate lending.