By Guy Montague-Jones2019-01-24T05:54:00
A change to the risk weighting applied to commercial property loans contributed to a collapse in Metro Bank’s share price this week.
The challenger bank’s shares plummeted almost 40% on Wednesday after it issued a trading update that analysts at Goodbody described as “negative on all fronts”.
A key factor behind the share price slump was the discovery that certain loans had been included in the wrong risk band, which meant it was not holding enough capital against them.
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