The demise of Bank North is raising concerns about the financial strength of other challenger banks as they contend with the cost-of-living crisis and a near meltdown in financial markets. Bank North had failed to raise enough cash to qualify for a full banking licence. Since 2013, the Bank of England has approved 54 new licences for banks including Monzo, Starling and Atom. Going south: Bank North had failed to raise enough cash to qualify for a full banking licenceA recent report from EY found revenue and profitability for challenger and specialist banks had risen last year while provisions for bad debts fell. Judging from the bombed-out share price of Metro Bank – one of the least capitalised banks EY surveyed – investors may already be factoring this in.

Source: Daily Mail October 09, 2022 03:13 UTC