New UK bank to be launched in next few weeks

New UK bank to be launched in next few weeks



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It has been more than a century since a new UK bank has launched, yet 2010 could be the year of new blood as a host of companies and entrepreneurs look to sort out the banking system by having a go themselves.

One of the most promising appears to be Metro Bank, the idea of

US

financial entrepreneur Vernon Hill.

The bank is thought to be on the verge of winning approval from the FSA, and could be launched in a matter of weeks. A report in the Financial Times newspaper stated that it will begin with two branches in London, with plans to open ten more in the capital over the next two years.

Mr Hill, who launched Commerce Bank in the

US

over thirty years ago, will allegedly assume the role of non-executive chairman of Metro Bank.

There are already 30 Metro branches in the States, although it is thought that the

US

business and

UK

business will be kept separate.

With the backing of 20 institutional investors, who have put around £75 million into the new venture, it should give the banking sector a much needed boost.

Since the onset of the economic downturn, only six banks have accounted for over 80% of

UK

mortgage lending.

However competition looks to be creeping back in, with the announcement from Metro Bank, as well as recent reports that companies such as Virgin and the Post Office are looking to enter the banking sector. Now all that is needed is to wait for the somewhat put upon FSA to approve their licences…

 

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